Part I: Multiple – Choise questions

Choose the only one right answer for each question

1. In Letter of Credit payment method, 2. In April 15th 2008, the issuing bank
commercial bank can finance importer received an B/E drawn in April 1st
through: 2008, which stated that time of payment
a.   Issuing L/C was 30 days from date. The expiry date
b.   Negotiating documents for export should be:
c.   Paying in advance a. 30 days from April 15th 2008
d.   Three above are right b. 30 days from April 16th 2008
c. 30 days from April 01st 2008
d. 30 days from April 02nd 2008
3. It is accepted more than one BL even 4. In order to minimize risk for issuing
L/C does not allow partial shipment, bank, it is best to require a B/L:
provided that the cargo is shipped in a. B/L made out to the order
same vessel, one routine and one arrival b. B/L made out to the order of
port: shipper
a. Right b. Wrong c. B/L made out to the order of
issuing bank
d. B/L made out to the order of
applicant
5. For a D/A order, importer is obliged 6. The difference between D/P and D/A
to pay at Collecting bank to obtain is:
shipping documents. This statement is: a. Role of Collecting bank
a. Right b. Wrong b. Type of B/E
c. Risks may occur to exporter
d. b and c

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7. Name and address of Commercial 8. The address of L/C applicant at
Invoice issuer may be different with “notify party” part on a B/L must be
name and address of L/C beneficiary absolutely same with that of L/C
provided that they are in the same stipulation. This statement is:
country. This statement is: a. Right b. Wrong
a. Right b. Wrong
9. An L/C does not stipulate term of 10. An L/C has expired date in May 05th
partial shipment. This can be understood 2008. Parties involves payment may
that: consider this date as:
a. Partial shipment is allowed a. Date in which the Issuing bank pays
b. Partial shipment is not allowed the Beneficiary
c. This L/C is not accepted b. Date in which bank negotiates the
d. None of the above Beneficiary
c. Expiry date to present documents
d. All the above are wrong
11. In order to assure safety for 12. To increase capacity for trade
Beneficiary, it is better to stipulate to finance of importer’s bank, which
use the First Draft for payment. This payment method should be employed:
statement is: a. Letter of credit b. Clean
a. Right b. Wrong Collection
13. It is compulsory to sign on bill of c. Documentary Collection d. Money
lading. This statement is: transfer
a. Right b. Wrong 14. It is compulsory to show date of
issuing on B/E. This statement is:
a. Right b. Wrong
15. Numbering BE is an important base 16. It is acceptable that Beneficiary may

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to differentiate the original or copy. This agree a part of L/C emendation. This
statement is: statement is: a. Right
a. Right b. Wrong b. Wrong
17. The point of time that Issuing bank 18. In Collection method, commercial
is bound payment liability for an bank can finance exporter through:
amended L/C is: a.   Negotiating payment document
a. 7 days since the issuance of the b.   Guarantee of contract execution
amendment c.   Guarantee of payment
b. 5 days since the issuance of the d.   a and b
amendment
c. 21 days since the issuance of the
amendment
d. None of the above is correct
19. Bank will not accept an BL without 20. To minimize risk for exporter in
noting “on board” for: case of lack of information about
a. Shipped on board BL importer, it is better to apply:
b. Received for shipment BL a.   Stand by L/C b. Transferable
c. Both of them L/C
c. Circulating L/C d. Confirmed L/C
Part II: Excercise
Exercise 1
Based on the following BE number IN02/056, answer the following
questions:
1.   B/E drawer? B/E payee? 4.   B/E expiry date? (0,5ps)
(0,75ps) 5.   B/E endorser? (0,5ps)
2.   L/C issuer? (0,5ps) 6.   How many drafts are drawn?
3.   B/E acceptor? (0,5ps) (0,25ps)

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Standard Chartered
USD 27,896.40
(Amount in figures) Singapore, 1 March
2008
No IN02/056
At 30 days from B/L’s date sight of this the second Bill of exchange
(First unpaid) Pay to the order of Standard Chartered Bank.
The sum of United States Dollars twenty seven thousand eight
hundred ninety six and cents forty only.
Value received drawn under Irrevocable Documentary credit No
02701155ILC0065 Dated 20 Jan. 2008 of Bank for foreign trade of Vietnam
To: Bank for foreign trade of Vietnam Royal Global Exports PTE
LTD

Signed
Given that:
B/L was issued on 02 March 2008, noted “on board” on 03 March 2008

Exercise 2:
The Issuing bank received one document set including some information
as follows:
v   Invoice was issued on 31st Aug, 2007, valued 100,000
USD,
v   Packing list was issued on 26th Sept, 2007
v   B/L1, issued on 01st Sept,2007, noted “clean on board”
on 01st Sept, 2007, dispatching port: Haiphong port; discharging
port: KOBE port; S1/100 vessel,
v   B/L2, issued on 04th Sept,2007, noted “ clean on board”
on 03rd Sept, 2007, dispatching port: Danang port; discharging port:
KOBE port; S2/100 vessel,
v   Insurance Policy amounted 100,000 USD, issued on 01st
Sept, 2007
Given that:
1. L/C stipulated that:

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 v   L/C issuing date: 15th Aug,2007, valued 100,000 USD
v   L/C expiry date: 30th Sept, 2007
v   Last delivery date: 15th Sept, 2007
v   Price term: CIF
v   L/C referred to UCP 600
v   Partial shipment was not allowed
2. Document presentation date was 25th Sept, 2007
Question: Has the Issuing bank have right to refuse this document set?
Why?

Exercise 3:
The Issuing bank received one document set including some information
as follows:
v   Invoice was issued on 30th November, 2007, valued
100,000 USD,
v   Packing list was issued on 26th Dec, 2007
v   B/L1, issued on 01st Dec,2007, noted “clean on board” on
01st Dec, 2007, dispatching port: Haiphong port; discharging port:
KOBE port; S1/100 vessel,
v   B/L2, issued on 04th Dec,2007, noted “ clean on board”
on 03rd Dec, 2007, dispatching port: Danang port; discharging port:
KOBE port; S1/100 vessel,
v   Insurance Policy amounted 80,000 EUR, issued on 05th
Dec, 2007

Given that:
1. L/C stipulated that:
v   L/C issuing date: 15th Nov, 2007, valued 100,000 USD
v   L/C expiry date: 31st Dec, 2007
v   Amount: 100,000 USD
v   Last delivery date: 15th Dec, 2007
v   Price term: CIF
v   L/C referred to UCP 600
v   Partial shipment was not allowed

2. Document presentation date was 01st Jan, 2008s

Question: Has the Issuing bank have right to refuse this document set?
Why?

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Exercise 4:
True/ False questions. Explain under UCP 600
1. a complies with b
2. a complies with c
Given:
a.   Insurance policy, valued 100,000 USD, issued on 23nd May, 2011, did
not show effective date
b.   Commercial Invoice with amount 100,000 USD, CIF Hongkong,
Incoterms 2000.
c.   B/L 1, showing consignee was Toyota, 100 Hai Ba Trung str, Hanoi,
Vietnam, issued on 21st May,2011, noted “on board” on 22nd May,
2011, Discharging port – Haiphong, Vietnam

Part III: True/False questions

1.   To draw a time B/E, date of issue is a compulsory content

2.   Credit card has more advantages than Debit card
3.   Opportunities for Collecting bank to finance importer in forward D/P
method are much more than that in D/P and D/A.
4.   In order to exchange traveller check for cash, the check owner must
sign under the watch of transaction staff.
5.   Under UCP 600, the Issuing bank is entitled to refuse to pay in case
that the consignee on B/L is not the same with L/C applicant.
6.   Law source term is compulsory content in a commercial L/C
7.   UCP 600 and ISBP 745 are legal bases to solve dispute between
exporters and importers.
8.   The sooner the buyer issues L/C, the more benefit it will bring

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9.   Risks that the Intermediate bank may face in Transferable L/C is
higher than in Back to back L/C
10. Risks to exporters in D/P and D/A method are the same.