 ..... is a document of tittle to goods.

Multimodal bill of lading

 A “Clean Bill of Lading" means:There is no clause or notation expressly declnring a
defective condition of the goods.
 A collecting bank receives a collection instruction from a foreign bank. Then the collecting bank
receives another instruction from the principal requesting to change the type of collection from D/A to
D/P. According to URC 522, what should the collecting bank do?Follow the instruction of the
remitting bank.
 A document that contains the most precise description of the goods is known as a.Packing list
 A Vietnamese importer buys goods according to the trade term "CFR Saigon Port" (Incoterms
2020)". The foreigm seller/exporter is;not obliged to buy insurance for the goods for the main
voyage of transportation
 A(n).. bill of lading does not guarantee that the goods have been loaded on the vessel:received-
for-shipment
 According the UCP600 when the L/C issuring bank determines that a presentation does not
comly and decides to refuse to honour, it most give a single notice to that effect the presented. The
notice must state-All (a) (b) (c) included in the notice
 According to Incoterms 2020, which trade term is relevant for the following trade transaction: A
buyer from Vietnam importing goods from Singapore prefers to make a contract of carriage for the
main route of sea transportation at the buyer's own expense and bears risks when the goods were placed
on board the vessel nominated by the buyer at Singaporean Port?FOB
 According to Incoterms 2020, which trade terms are relevant for the cases of at transportation?
EXW, FCA, CPT, DDP
 According to UCP 600, how many days does an issuing bank have to check the compliance of
presented documents? Five banking days following the day of presentation.
 According to UCP 600, how many days does the seller have to prepare and present original B/Ls
to the issuing bank/ negotiating bank? Within 21 days after shipment date but within the validity of
L/C
 According to UCP 600, what will an issuing bank do if the bank concludes that there are
discrepancies in the presented documents? All are correct
 According to UP 600, how many days does the seller have to prepare and present original
Within 21 davs after shipment date but within the validity of L/C
 According to UP 600, what will an issuing bank do if the bank concludes that there are
discrepancies in the presented documents?All are correct
 According to URC 522, what does the collecting bank have to check when receiving a set of
documents for collection? (D) The authenticity of documents; (2) the quantity of each document; (3)
the number of types of documents; (4) the content of documents (2) và (3)
 An ocean bill of lading (B/L) is to be issued and duly signed byall a., b. and care correct
 Arrange these payment methods in the descending order of the seller's risk: Open account, D/A,
D/P, irrevocable L/C, confirmed L/C, advance payment
 BW Bank in Germany opens the JPY account at JP Bank in Tokvo. JP Bank in Tokyo also
opens the EUR account at BW Bank. So, which following statement is not correct? BW Bank calls the
EUR account as Nostro
 Certificated of origin is issued by which of the following entities is the basis for goods enjoy ch
preferential tariff treatment? Exporter and Chamber of Commerce together
 Company A sells goods to company B and draws a term bill of exchange against company B.
The B/E has been accepted by company B and then endorsed to company C. Which of the following
statements is CORRECT with the properties of the B/E?Both of company A and company B are
obligated to pay company C.
 Field 71A in MT103 expresses “Details of charges: OUR”. Who is responsible for the paying
bank’s charges? The remitter.
 If a bill of exchange is made to bearer, payment should be made to.. anyone who presents the
draft
 If B/E is accepted by ...so-called -----If B/E is accepted by ... So called ........If B/E is issued
by ....…Which following words are correct respectively? Importer/ Trade acceptance/ Exporter's
bank/Banker's acceptance/ Exporter/ Bank draft
 If the importer refuses to pay for imported cargo, the collecting bank should: Follow the
instructions presented in collection instructionreceived from the remitting bank.
 If the issuer of documents is not stipulated dearly in the LAC, which documents can he issued
by the exporter himself?Quantity certificate, Packing List, Invoiee and C/O
 In a bill of exchange, the place of payment is not specified. This means that:The place specified
beside the name of the drawee is deemed to be the place of payment and at the same time the
place of the domicile of the drawee
 In a bill of exchange. MrA was the drawer and Mr. B was the drawce, the order ot puvment is
written as follows: "at sight of this ol this first Bill of Exchange pay to the order of Mr the amount of 1
mited Sates Dollars one hundred thousand only After isspance, the bill of exchange Wisrams ferred by
ondorsement twice. In the first endorsement, Mr. Ctransferred this bill of exchangeto Mr. X by signing
on the back side with a wording "Pay to the order of Mr. X”, Who is the rightperson to transfer this bill
of exchange in the second endorsement?Mr.X
 In a foreign sules transaction, in which a Vietnamese party is the seller and a Japanese party is
the buyer and the goods are to be shipped from Saigon Port to the Port of Tokyo, the Vietnamese party
had better select the following trade term:. USD 500,000.- CIF Port of Tokyo
 In a foreign trade contract, the seller is obliged to deliver to the buver a document of title to the
goods. That document is:Marine B/L
 In a foreign trade transaction the seller and the buyer agree the followingsif) the buyer bears
risks and costs when the goods were delivered to the carrier nominated by the buyer himself at the
seller's premises; i the seller carries out all customs formalities for the export of the goods. Which of
the following trade terms of Incoterms 2020 is relevant for this trade transaction?FCA
 In a sales contract, the payment term is stipulated as “by T/T within 90 days after shipment”. Of
the following statements, which one is incorrect? the seller will receive payment before making
shipment
 In D/P the collection instruction clearly stipulated that “All charges are for drawee’s account. in
case of refusal, please waive the charges”. In fact, the importer did not agree to make payment for both
the value of the documents and the charges. What should the collecting bank do?-Do not release the
documents to the importer, and advise the remitting bank without delay
 In Incoterms 2020, compared with FOB conditions, importing goods under IF terms helps the
importer: Do not contract for the main transport
 In Incoterms 2020, which term requires that the seller contracts for carriage and bear all risk up
to the named point in the buyer's country? DP and DPU
 In international payments, the risk that a companies will not reccive payment from their
counterparty because of current civil war which effects banking operation. It is:Country risk
 In the case of D/P, the collection instruction stipulates “All charges are for drawee’s account. In
case of refusal, do not waive the charges”. If the importer agrees to make payment for the amount of
collected value only and refuses to make payment for the collection charge, how will the collecting
bank deal with the documents? The collecting bank does not deliver the documents to the importer
and inform the remitting bank about the situation immediately.
 In the framework of correspondent banking activities, Bank A (based in France) opens a JPY
account with Bank B (based in Japan). Conversely, Bank B (based in Japan) opens an EUR account
with Bank A (based in France). In communiention with Bank A, Bank B refers the JPY Account of
Bank ANS..(1)..and the UR account of Bank Bus-(2)d. Vostro account; (2) Nostro account
 In which trade term is Saigon port of Vietnam being a loading port?FAS Saigon Port, Vietnam
 International trade and domestic trade differ because of:All of the above
 MIT103 expresses "Details of charges: OUR". Who is responsible for the paying bank's:The
remitter.
 Of the following methods of payment, which method is the most disadvantageous to
the exporter: Remittance after shipment
 Of the following statements, which statement is incorrect when saying about
commercinl:Commercial invoices are the documents to identify the voyage of the shipment
 Of the following transport documents, which document is a title deed?Multimodal transport
document, ocean bill of lading
 On a B/L issued by STIP shipping company, shipper is "Kaisan Co. (Japan)"; consignee is "to
order"; and notify party is “Ecohause Co.Ltd (Vietnam)". The rightfull endorser is:Kaisan Co.
 On a bill of lading issued by MASK shipping company, shipper is #GMK Co. (Japan)";
consignee is "To order of VP Bank (Vietnam)" and notify party is "Hausteck Co.Ltd (Vietnam)". The
rightfull endorser is: VP Bank
 On a bill of lading, you find the details of the shipper, consignee and notify party as follows:
Shipper: Sakura Co., Ltd. (Tokyo)Consignee: To the order of Vietcombank Notily Party: Tan Thanh
Co., Ltd. (HCMC Vietnam) The righful endorser is:Vietcombank
 On a bill of lading, you find the following statement: "Consignee? To the order of shipper". The
party that has the right to lading to other party by right to transfer the ownership of goods described on
the bill of lading to other party by endorsement is:the shipper
 Rank the trade terms of Incoterms according to the cost that the seller has to bear (low to high);
FAS<FOB<CFR<CIF
 The acceptor of a bill of exchange is:the drawee
 The date of the insurance document must not be later than was unless it indicates that the
insurance is effective from an date no later than ........ Bill of lading date / Bill of lading date
 The hunk that receive a specife sum of money from the importer's bank for check clearance
is;Collecting bank
 the seller to the buyer:when the goods are delivered to the nominated carrier in the country
of the exporter
 What type of L/C should be used when a company exports goods through a middleman?Back to
back L/C.
 What type of L/C should be used when a company in Vietnam involves in a shoes processing
stage for a foreign partner? Reciprocal L/C.
 When the drawee signs the bill of exchange, it is considered as:Accepted
 Which documents are not to be issued by the seller/exporter.Bill of lading, insurance policy.
form Al certificate of origin
 Which following operations do not apply to promissory note? Discounting
 Which international organization issues documents such as Incoterms, URC and UP (or
regulating international payment activities?International Chamber of Commerce
 Which method of payment is applied tor non-merchant transactions? Remittance
  Which of the following arrangements ranks the trade terms in the ascending order of the buyer's
responsibility: EXW. FOB. CFR. DDP
 Which of the following contents is not required to be stated on the ocean bill of ladingd. Unit
price of goods
 Which of the following documents has a function of a document of title to goods?Bill of lading
 Which of the following functions does an Air Waybill not have;document of title
 Which of the following group of trade terms Incoterms 2020) are applicable for airway? EXW.
FCA. CIP. DAP
 Which of the following statements is relevant?Parties are bound by the trade term that is
agreed upon by the
 Which of the following trade term stipulates that the seller is obligated to make a contract of
earringe and pay for the cost of carriage?CFR
 Which of the following transport documents is a negotiable document (i.e. it is capable of being
sold): (D) Air Waybill Waybill. (2) Ocean Bill of Lading: (3) Road Consignment Note; (4) Sea way
bill:Only (2)
 Which purpose is not relevant for a certificate of origin?d. Determining the ownership of
goods
 Which statement about the trade term CIF is not correct?The buyer has to sign an insurance
contrac for the delivered goods
 Which statement is correct about commercial invoice? It is showed carringe route, goods
description, unit price and total price of goods as well as trading and payment term

--------------------------------------
A collecting bank receives a collection instruction from a foreign bank. Then the collecting bank
receives another instruction from the principal requesting to change the type of collection from D/P to
D/OT. According to URC 522, what should the collecting bank do?-Follow the instruction of the
principal if the buyer agrees to do so
A letter of credit has an expiry date of 28th May and the latest shipment of 7th May. No
presentation period is specified. The goods are shipped on 3rd May. What is the latest date for the
presentation of documents?-28th May
A vietnamese importer buys goods according to the trade term "CFR Saigon Port (incoterms
2020)". The foreign seller/exporter is:→ not obliged to buy insurance for the goods for the main
voyage of transportation
According to incoterm 2020, which trade term are relevant for the cases of air transportation?→
EXW, FCA, CPT, DDP (26)
According to incoterms 2020, which trade term is relevant for the following trade transaction: A
buyer from Vietnam importing goods from Singapore prefers to make a contract of carriage for the
main route of sea transportation at the buyer's own expense and bears risks when the goods were places
on board the vessel nominated by the buyer at Singaporean Port? FOB
An advising bank is responsible for:-the apparent authenticity of the letter of credit or
amendment.
An ocean bill of lading (B/L) is to be issued and duly signed by →tất cả đều đúng (6)
An ocean bill of lading (B/L) is to be issued and duly signed by? All correct
As compared to clean collection, D/P provides a higher degree of security to the exporter
because:-the shipped goods are still under the ownership of the seller until the buyer makes payment
 As per the trade terms CPT and CIP of Incoterms 2020, the risks on goods are transferred from
the seller to the buyer: when the goods are delivered to the nominated carrier in the country of the
exporter (16)
Bank X will receive a Letter of Credit opened by Bank Y. The confirmation instruction indicates
that the Advising bank must add their confirmation to the L/C. However, Bank X is not prepared to add
their confirmation to the L/C. Which of the following should be Bank X's action?-Advise the L/C to
Beneficiary without adding the confirmation and inform Bank Y without any delay
East Bank sends a collection on behalf of one of the exporters to their correspondent, West
Bank. West Bank passes it on to the importer bank, South Bank. South Bank contacts the importer and
requests payment. How many collecting banks are there?-One
How does a T/T payment method work?-Items are delivered, then payment is made through
SWIFT.
If payment is made by T/T in advance which specifies in a sale contract, which of the following
statement can fit the requirement?-Payment is made to the exporter before the goods are delivered.
If payment is to be made at the time that documents are presented, this is referred to as a ...........
Letter of Credit-Sight
In a bill of exchange, the place of payment is not specified. This means that: →→ the place (😎
specified beside the name of the drawee is deemed to be the place of payment, and at the same time the
place of the do domicile of the drawee (13)
In a collection, who is the principal?- The exporter
In a foreign trade contract, the seller is obliged to deliver to the buyer a document of title to the
goods. That document is: marine B/L
In a foreign trade transaction the seller and the buyer agree the following: (i) the buyer bears
risks and costs when the goods were delivered to the carrier nominated by the buyer himself at the
seller's premises; (ii) the seller carries out all customs formalities for the export of the goods. Which of
the following trade terms of Incoterms 2020 is relevant for this trade transaction? → FCA (12)
In a sale contract, there are an exporter in Vietnam and an Importer in the USA.
In a trade transaction, the seller based in Vietnam and the buyer based in Japan agree that the
goods are to be shipped from Saigon Port to the Port of Tokyo. Of the following trade terms, which
trade term relevant? USD 500,000-CIF Port of Tokyo (8)
Of the following statements, which statement is incorrect when saying about commercial
invoices? → commercial invoices are the documents to identify the voyage of the shipment (25)
Of three following transport documents, which document is a title deed? → multimodal
transport document, ocean bill of lading (22)
On a bill of lading, you find the details of the shipper, consignee and notify party as follows:
Shipper: Sakura Co, Ltd. (Tokyo) Consignee: to the order of Vietcombank Notify party: Tan Thanh
Co, LTd. (HCMC Vietnam) The rightful endorser is: Vietcombank (9)
Ranks the given trade terms of incoterms according to the cost that the seller has to bear (from
low to high): FAS<FOB<CFR<CIF (17)
The acceptor of a bill of exchange is: the drawee (11)
The bank having definite undertaking to honour a complying presentation is:-Confirming bank
What type of L/C is a mechanism for providing funding to the seller prior to the shipment of
goods?-Red clause L/C
What type of L/C would be used when a company exports goods through a middleman?-
Transferrable L/C
 Which documents are not to be issued by the seller/ exporter? → bill of lading, insurance policy,
certificate of phytosanitary issued by the Department of Health (24)
Which international organization issues documents such as incoterms, URC and UCP
forregulating international payment activities? → international chamber of commerce (3)
Which is the most advantageous method of payment from the perspective of a buyer when
trading with a new partner?-T/T after shipment
Which of the following documents has a function of a document of title to goods? bill of lading
Which of the following is TRUE of a letter of credit?-Issued by a bank
Which of the following ranks of the trade terms reflects that the cost for the seller is
increasing→FAS, FOB, CFR, CIF (7)
Which of the following statements is relevant? → parties are bound by the trade term that is
agreed upon by them (15)
Which of the following trade term stipulates that the seller is obligared to make a contract of
carriage and pay for the cost of carriage→ CFR (19)
Which of the following trade terms (Incoterms 2010) are applicable for maritime transport and
inland waterway only?-CFR, FOB, CIF, FAS
Which of the following transport documents is a negotiable document (i.e. it can be transferred
by endorsement): (1) Air Waybill; (2) ocean Bill of lading;... → only (2)
Which of these Incoterms could apply: (iii) CIF New York-Only (iii)
Which one of the following International Chamber of Commerce (ICC) Publication /governs
dealing in documentary collections?-UCP600
Which party has the most responsibility to examine the terms and conditions of a Documentary
Credit against the sales agreement?-Issuing Bank

Bill of exchange
Dated: (Ghi rõ ngày, tháng và địa điểm lập HP)
For_______ (Phải ghi rõ số tiền, USD hay SGD, chú ý đơn vị nghìn đô dùng dấu phẩy, đơn vị lẻ
mới dùng dấu chấm, ghi USD hoặc GBP trước số)
At ________(ở đây phải điền rõ sau bao nhiêu ngày từ khi giao hàng thanh toán=> phần này là
phần
quan trọng không được bỏ sót có 2 trường hợp) sight of this First of Exchange (Second of the
same
tenor and date unpaid), pay to the Order of
__________(Ghi ngân hàng phục vụ người thụ hưởng) the sum of
____________(Ghi bằng chữ số tiền) only.
Drawn under ______(Ghi tên công ty, người lập L/C và quốc gia của công ty đó).
L/C No: .
Dated: .
To _______(Ghi tên, địa chỉ, quốc gia của ngân hàng phục vụ người mở LC)
2 trường hợp:
- Hối Phiếu trả ngay: At the first sight of / Sau khi nhìn thấy lần thứ nhất của...
- Hối phiếu trả sau: At 60days after date of shipment/ Sau 60ngày kể từ ngày hàng đến nơi...
Cash in Advance
Also known as pre-payments, cash in advance is as it sounds. The buyer completes
the payment and pays the seller in full before the merchandise is delivered and
shipped off to the buyer.

While there are plenty of cash in advance payment methods available, credit card
payment and wire transfers (electronic payment via banks) are the more commonly
used payment modes.

While this is an attractive option for sellers, it’s presents a significantly high risk for
buyers as it produces a disadvantageous cash flow and no definite guarantee of
receiving the goods or the condition in which they arrive.

This is generally a recommended option for sellers who are dealing with new buyers
or buyers with weak credit ratings, and/or for high-valued products.

Other cash in advance methods include:

 Debit card payment

 Telegraphic transfer
 International cheque
 etc.

Pros and Cons of Cash in Advance

Pros Cons

→ Risk of not receiving shipment or receiving damaged

Buye
→ Minimal shipment
r
→ Unfavorable cash flow

→ Secure full payment

Selle before shipment → Risk of losing business to competitors if offering this as
r → No risk of non- the only accepted international payment method
payment

Letters of Credit
A Letter of Credit is one of the most secure international payment methods for the
importer and exporter as it involves the assistance of established financial institutions
such as banks as an intermediary and a certain level of commitment from both
parties.

With a Letter of Credit, payment is made through both the buyer and sellers’ banks.
Upon confirmation of trade terms and conditions, the buyer instructs his bank to pay
the agreed-upon sum by both parties to the seller’s bank. The buyer’s bank then
sends a Letter of Credit as proof of sufficient and legit funds to the seller’s bank.
Payment is only remitted after all stated conditions are met by both parties and
shipment has been shipped.

Letters of Credit are also sometimes known as LC, bankers commercial credit or
documentary credit.

Pros and Cons of Letters of Credit

Pros Cons

→ Guarantee of cargo being shipped before

Buye payment → Reliance on seller to ship goods
r → Obligation by seller to fulfill stated and as specified
negotiated conditions

→ Reliable proof of foreign buyers’ credit prior to

shipment of goods
→ Obligation by buyer to fulfill stated and
Selle
negotiated conditions → Minimal
r
→ Payment by buyer’s bank in the event of a
default
→ Low risk

Documentary Collections
Documentary collections is a process in which both the buyer’s and seller’s banks act
as facilitators of the trade.

The seller submits documents needed by the buyer, such as the Bill of Lading, which
is necessary for the transfer of title to the goods, to its bank. The seller’s bank will
then send these documents to the buyer’s bank along with payment instructions. The
documents are only released in exchange for payment, which is remitted immediately
or at a specified date in the future.

With documentary collections, also known as Bills of Exchange, the seller is basically
handing over the responsibility of payment collection to his bank.

Pros and Cons of Documentary Collections

Pros Cons

Buye → More economical than Letters of → Reliance on seller to ship goods as

r Credit specified

→ No verification involved
Selle
→ Minimal → No guarantee of payment from bank
r
→ No protection against cancellations

Open Account
Under Open Accounts (also known as Accounts Payable), merchandise are shipped
and delivered prior to payment, proving to be an extremely attractive option for
buyers especially in terms of cash flow. On the other end of the spectrum, however,
sellers are faced with high risks.

With this payment option, the seller ships the goods to the buyers with a credit period
attached. This is usually in 30-, 60-, or 90-day periods, during which the buyer must
carry out full payment.

Open Accounts are usually only recommended for trustworthy and reputable buyers,
for buyers and sellers who have an established and trusting relationship, and/or for
exports with relatively lower value to minimize risk.

Pros and Cons of Open Account

Pros Cons

Buye → Receives goods before payment is due

→ Minimal
r → Positive cash flow

Selle → Can attract customers in competitive → High risk of

r markets default
 Consignment
The consignment process is similar to that of an open account whereby payment is
only completed after the receipt of merchandise by the buyer.

The difference lies in the point of payment. With consignment, the foreign buyer is
only obliged to fulfill payment after having sold the merchandise to the end
consumer. This international payment method is based on an agreement under
which the foreign seller retains ownership of the merchandise until it has been sold.
In exchange, the buyer is responsible for the management and sale of the
merchandise to the end customer.

Consignment is usually only recommended for buyers and sellers with a trusting
relationship or reputable distributors and providers. Given the high risk involved,
sellers should make sure they have adequate insurance coverage that can cover both
the goods from transit to final sale and mitigate any damages caused in the event of
non-payment by the buyer.

Pros and Cons of Consignment

Pros Cons

→ Payment is due only after final sale of → May have large inventory to
Buye
goods to end consumer manage
r
→ Quick receipt of goods → Minimal

→ Payment not guaranteed until end

→ Lower storage fees
Selle sale
→ Less inventory management
r → Lack of access to and management
→ More competitive
of merchandise

available with any bank by negotiation (cho phép thanh toán tại ngân hàng bất kỳ bằng hình thức chiết
khấu (chứng từ);- allow payment at any bank by discount (document)

The purpose of a sales agreement is to act as a legally binding contract between two parties involved in an
exchange of money for goods, services, and/or property. One party is a buyer, while the other is a seller.
Both the buyer and seller may be individuals or organizations.
Why does the exporter have to present just 2/3 set of original B/L? Will this provision have any
potential risk for the issuing bank. Explain your answers in details.

Answer:The 1/3 original B/L is directly forwarded to the buyer for taking delivery of goods. This can be
applied in case goods arrive before documents. You may think that the importer can bring the B/L to take
delivery of goods from the shipping company and afterwards the importer is unwilling to make payment.
However, the B/L is issued in the form of “to order of BIDV”. So, in order for the importer to use the B/L to
take delivery of goods, the B/L should be endorsed by the Bank. Before getting the B/L endorsed by the
Bank, the Bank would request the importer to make immediate payment or borrow money from the bank to
make payment. Obviously, the bank itself can manage this risk.