CDCS Specimen Simulation 2

SIMULATION 2
BACKGROUND:
You are working in the credits department of Worldwide International Bank in London and have
received a request to effect a transfer of a credit from the beneficiary.
ASSUMPTIONS:
1.
2.
3.
4.
5.
Your bank has advised the credit to the beneficiary.

Your bank has added its confirmation to the credit.
The enclosed SWIFT MT700 fully reflects the terms of the credit as issued.
No amendments have been issued to the credit.
The transfer application attached has been signed by authorised signatories of the
beneficiary.
6. Transfer commission will be paid by the first beneficiary.
SUPPORTING DOCUMENTATION:
1. Documentary credit MT700.
2. Transfer application form.
INSTRUCTIONS TO CANDIDATES:
Identify the five discrepancies in the attached documents using the discrepancy
checklist. These will be issues that you would need to first resolve with the customer
before you could proceed to transfer the credit.
DISCREPANCY CHECKLIST
1.
Adequacy of amount of insurance cover.
2.
Awareness of disclosure of original applicants name in invoice

requirements.
3.
Awareness of disclosure of original applicants name in transport

document.
4.
Credit does not state which bank is authorised to effect a transfer of

credit.
5.
Curtailment of the expiry date of the credit and presentation period

under the transfer.
6.
Incoterms stated in credit are no longer valid.
7.
Instruction to effect transfer of credit on an unconfirmed basis.
8.
Instruction to expire the transferred portion of the credit in Germany.
9.
Partial transfer.
10.
Requirement to include first beneficiary order number on invoice.
MT700 Issue of a Documentary Credit
Issuing Bank:
INTERCONTINENTAL PACIFIC BANK
BANGKOK
THAILAND
Form of Documentary Credit
IRREVOCABLE TRANSFERABLE
Documentary Credit Number

LCDC123876
Applicable Rules
UCP LATEST VERSION
Date and Place of Expiry
31 MARCH XXXX UK
Applicant
SIMPLY IMPORTS LTD
BANGKOK
THAILAND
Beneficiary
UTILITY SUPPLIERS LTD
LONDON
UK
Amount
USD320,000.00
Available With
WORLDWIDE INTERNATIONAL BANK BY NEGOTIATION
DRAFTS DRAWN AT 90 DAYS SIGHT
ON ISSUING BANK
Partial Shipments
PROHIBITED
Transshipment
PROHIBITED
Port of Loading
ANY EUROPEAN PORT
Port of Discharge
BANGKOK PORT
Latest Shipment Date
10 MARCH XXXX
Description of Goods
10000 PIECES OF WOODEN CHAIRS
AT USD32.00 PER CHAIR
AS PER ORDER NUMBER 23490/1 DATED 14 JANUARY XXXX
CIF BANGKOK PORT (INCOTERMS 2000)
Documents Required
+ SIGNED COMMERCIAL INVOICE IN THREE COPIES ISSUED IN THE NAME OF SIMPLY IMPORTS
LTD BANGKOK
+ BILLS OF LADING ISSUED TO ORDER AND BLANK ENDORSED MARKED FREIGHT PAID AND
NOTIFY APPLICANT
+ INSURANCE POLICY/CERTIFICATE FOR CIF VALUE OF THE GOODS PLUS 10 PERCENT
COVERING ALL RISKS
+ PACKING LIST EVIDENCING GOODS PACKED IN WOODEN PALLETS
Charges
ALL BANK CHARGES ARE FOR THE APPLICANT'S ACCOUNT
Confirmation
CONFIRM
Instructions to the Negotiating Bank
WE HEREBY ENGAGE TO PAY DOCUMENTS DRAWN IN ACCORDANCE WITH THE CREDIT
TERMS.
ALL DOCUMENTS TO BE SENT IN TWO MAILS BY COURIER TO OUR DOCUMENTARY
PROCESSING
AREA, RANGOON ROAD, AREA 32, BANGKOK THAILAND.
APPLICATION FOR TRANSFER OF A LETTER OF CREDIT

Please effect a transfer under
Documentary Credit
Number
LCDC123876
Issued by
Intercontinental Pacific Bank
on the following terms

Second Beneficiary Name and
Address
Natural Wood Furniture
Suppliers GmbH
15 Ringstrasse
Second Beneficiary Bank Details

Deutsche Arbeit Bank A.G.
Frankfurt
SWIFT ADDRESS: DEAR DE FF
XXX
Account Number: 563428-006
Frankfurt
D -5378
Amount to be transferred
USD120,000.00
Expiry Date
20 March XXXX
Latest Shipment Date

10 March XXXX
Quantity of Goods to be supplied by Second Beneficiary

All of the goods covered by the original credit
(tick)
Unit price (if stated in original

credit)
USD24.00
Insurance Cover
If the original credit requires insurance, please
indicate
percentage over invoice value cover is required for
Presentation
Period
10 days
or the following
goods
5,000 WOODEN
CHAIRS
10%
Substitution of Applicant
Name
Our name is to be substituted for that of the original credit applicant (tick)
or
Our name is not to be substituted for that of the original credit applicant (tick)
Amendments
Amendments to the original credit may only be advised to the second
beneficiary with our express agreement (tick)

or
Amendments to the original credit may be advised to the second beneficiary
without prior referral to
ourselves (tick)
Additional
Information/Instructions
Our order number D-5634 to be quoted on commercial invoice.
Place of expiry for transfer :
Germany
Transfer credit to be advised on unconfirmed basis
Please see separate transfer application form for transfer of goods balance to Italian
Foresters Spa

CDCS Specimen Simulation 2

Uploaded by

Copyright:

Available Formats

CDCS Specimen Simulation 2

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CDCS Specimen Simulation 2

Uploaded by

Copyright:

Available Formats

SIMULATION 2

Your bank has advised the credit to the beneficiary.

Adequacy of amount of insurance cover.

Awareness of disclosure of original applicants name in invoice

Awareness of disclosure of original applicants name in transport

Credit does not state which bank is authorised to effect a transfer of

Curtailment of the expiry date of the credit and presentation period

Incoterms stated in credit are no longer valid.

Instruction to effect transfer of credit on an unconfirmed basis.

Instruction to expire the transferred portion of the credit in Germany.

Requirement to include first beneficiary order number on invoice.

MT700 Issue of a Documentary Credit

Documentary Credit Number

APPLICATION FOR TRANSFER OF A LETTER OF CREDIT

on the following terms

Second Beneficiary Bank Details

Latest Shipment Date

Quantity of Goods to be supplied by Second Beneficiary

Unit price (if stated in original

beneficiary with our express agreement (tick)

You might also like