International-Settlement-Test---

International SettlementTest3I.Define the following terms.16%

1.letter of credit

2.irrevocable credit

3.confirming bank

4.negotiating bank

11.Decide whetherthe followingstatements aretrue orfalse.20%

1.A letterofcreditplaces abanks creditinstead of a commercialcredit,so thebeneficiaryhas norisks toget payment.f

2.The issuing bank cantdishonor thedocumentary billwhen the documents arecomplied with the terms and conditions of the creditwhereas the goods arenotcomplied with the contract.T

3.A commercial invoice is a statementdescribing themerchandise,its cost,andshipping charges.T

4.The mainresponsibility ofbanks underL/C isto examineeach documentpresentedto seewhether itappears onthe faceto bein compliancewith the credit terms.T

5.An irrevocablecredit cannotbe amended,revoked orcancelled.F

6.Instructions for the issuanceof acredit,the credititself,instructions foranamendment thereto,and the amendment itself,must becomplete,precise andnotinclude excessivedetail.T

7.When the issuing banknominating anotherbank to advise the credit,the lattercanselect to advise the credit orselect not toadvisethe credit.T

8.When abank decidestoadvisethe credit,it shalltake reasonablecare tocheck theapparentauthenticity of the creditwhich itadvise.T

9.A revocablecredit canbe cancelledor amendedby the issuing bankat anymomentand withoutprior noticeto the beneficiary.F

10.When theissuing bankadds theword“confirm“in thecredit,it meansthecredit isconfirmed by theissuing bank,then theissuing bankbecomes the confirming bank.F

11.The bill of ladingis evidenceof thecontract ofcarriage betweenthe applicantande carrier.F

12.Banks dealexclusively withdocuments meansthey arenot ina positionto verifywhetherthe goodssupplied areactually identicalwith thosespecified in thecredit.T

13.Unless otherwisestipulated inthecredit,a transferable credit canbe transferredonlyonce.T

14.The bank will acceptthe bill of ladingindicated withthe notationas“on boardoron deck”.F

15.The beneficiaryof atransferred creditis themiddleman.F

16.The applicantis liablefor repaymentof theadvances ifthe beneficiaryfailed topresentthe documentscalled forunder thered clausecredit.T

17.If anissuing bank increases the amount fromUSD20,

000.00to USD25,

000.00,theissuingbank shallbe irrevocablybound bytheamendmentby it,the confirmingbankmay extendits confirmationto theamendment ornot extendits confirmationtothe amendment.T

18.The issuingbank,theconfirming bank,or nominatedbank shalleach haveareasonable time,nottoexceed3days followingthe dayof receipt of thedocuments,toexamine thedocuments.F

19.A bankwill notaccept acover note.T

20.A billof ladingthat bearsa wordingbale brokenis anunclean billof lading.T IH.Choose thebest answersto eachof thefollowing question.20%

1.The draweeunder acredit canbeBCDE.A.negotiating bankB.issuingbankC.paying bankD.accepting bankE.cofirming bank

2.When examingthedocumentsunder credit,the principlesinvolved includeABCD.A.banks dealexclusively withdocumentsB.banks observethe ruleof strictcompliance^C.banks assumeno responsibility for authenticity,form orvalidity of the documentsD.banks assumeno responsibility for theact of the thirdparites takingpart inthecredit operationsE.banks takesecondary liability

3.When thereisamiddleman ininternational trade,the availablecredit areBD.A.reciprocal creditB.back-to-back credit C.negotiation creditD.transferablecredit E.revolving credit

4.ABCDneed toexamine thedocuments beforepayment.A.Issuing bankB.Negotiating bankC.Paying bankD.Accepting bankE.Reimbursing bank

5.When itis dishonoredbytheissuingbank,ACDEdont havethe rightof recourseto the beneficiary.A.confirmingbankB.negotiating bankC.paying bankD.accepting bankE.deferred payingbank

6.The middlemanhas theright tosubstitute theCDin back-to-back credit.A.billoflading B.insurance documentC.commercial invoiceD.draft E.certificate oforigin

7.When buyersapply toopen acredit,they mustobey therules asABC.A.refer todocuments onlyB.be clearconciseC.do notspecify impossibledocumentationD.have adequatefunds inhis accountE.on commercialbasis

8.As precautionarymeasure,security arrangementmay takethefollowingforms ABC.A.margins B.line ofcreditC.third partyguaranteeD.application forcreditE.confirmation

9.The functionsofabilloflading areABCD.A.as areceiptofthe goodsB.as evidenceofthecontract forcarriageC.as aquasi-negotiable documentD.as documentof titleE.as akey accountingdocument

10.When beneficiarypresents thedocumentation tothe bank,the principleinvolved ABC.A.completeness B.correctness C.consistencyD.standard E.simpleIV.Analyze theprinciples andcases ininternational settlementsand giveyouropinion.24%

1.Terms suchas,!first class”,nwell known，qualified11,nindependent nofficialVcompetentnor local”used todescribe theissuer ofa documentallow anyissuer exceptthebeneficiary toissue thatdocument.Unless requiredto beused ina document,words suchasprompt，immediately oras soonas possible11will bedisregarded.The wordsto，，until,till“什om and“between”when usedto determinea periodof shipmentincludethe dateor datesmentioned,and thewords beforeand nafternexcludethe datementioned.UCP600,Article3答用诸如“第一流的”、“著名的”、“合格的”、“独立的”、“正式的”、“有资格的”或“本地的”等词语描述单据的出单人时，允许除受益人之外的任何人出具该单据除非要求在单据中使用，否则诸如“迅速地”、“立刻地”或“尽快地”等词语将被不予理会信用证作为审单的标准，应该确保用此准确和唯一性，如果出现了一些表示不明确的规定时，为确保信用证的顺利使用，这些不明确的规定将被忽略这也要求申请人在申请开证时应做到清楚、简洁

2.A bankassumes noliability orresponsibilityfor the form,sufficiency,accuracy,genuineness,falsification orlegal effectof anydocument,or forthe generalorparticular conditionsstipulated ina documentor superimposedthereon;nor doesitassume anyliability orresponsibilityforthe description,quantity,weight,quality,condition,packing,delivery,value orexistence ofthegoods,services orotherperformance representedby anydocument.UCP600,Article34答信用证业务中，银行对任何单据的形式、充分性、准确性、内容真实性，虚假性或法律效力，或对单据中规定或添加的一般或特殊条件，概不负责；银行对任何单据所代表的货物，服务或其他履约行为的描述、数量、重量、品质、状况、包装、交付、价值或其存在与否也概不负责信用证处理中银行不涉及商业事务和商业纠纷，仅就单据的表面是否符合信用证的规定进行审核，而无需处理单据本身的真实性和单据相关的货物状况

3.On11,July,2005,a beneficiaryreceived thefollowing L/C.Before thevalidity ofthecredit,the beneficiarypresented aset ofdocuments tothe bank,indicating thequantity:995tons,theamount:USD99,

500.

00.The issuingbank dishonoredforthereason as:The quantityand theamount arenot compliedwiththeterms and conditions ofcredit/9IRREVOCABLE CREDIT■■■■L/C amount;:about USD100,

000.00Unit price:USD100per ton,quantity:1000tonsTotal price:USD100,

000.00,C.L NewYork答开证行拒付理由不成立UCP600第三十条信用证金额、数量与单价的伸缩度a款规定“约”或“大约”用于信用证金额或信用证规定的数量或单价时，应解释为允许有关金额或数量或单价有不超过10%的增减幅度本题信用证前出现了大约字样，因此受益人提交单据的金额中出现上下10%的增减都属于可接受范围USD99,

500.00属于上下10%的增减范围内，因此开证行的拒付不成立V.Practice20%Please answerthe questionsaccording tothe givencredit.1In thecommercial invoice,the makeris SUMITOMO CORPORATION,TOKYOYes/No,the consigneeis JIANGSU NATIVE PRODUCE IMP.AND EXP.GROUPCORP.,NANJING.Yes/No2%2The amountofthecommercialinvoiceis JP¥3,001/

23.13,its compliedwith thetermsandconditionsofthecredit.Yes/No2%3Please fillinthedraft accordingtothecredit.％

①Exchange forNanjing,14,April,2005

②③At sightpay tothe orderof.____________________________________

④the sumof______________________________________

⑤Drawn under__________________________________________________

⑥To:For:©4List therequired documents.1%5When theAir waybillindicates thegoods havebeen sentby partialshipments andtransshipment,itiscompliedwiththetermsandconditionsofthecredit.Yes/No1%6This isa confirmedcredit.Yes/No1%7If thedate ofshipment is31,March,2005,thebeneficiarymust presentthedocuments within15,April,

2005.Yes/No1%8The totalamount insuredis USD3,385,

882.

5.Yes/No2%9The issuingbankwillaccept afull setof insurancepolicy.Yes/No1%10Jiangsu nativeproduce Imp.Exp.Group assumesto payforthebanks charges.Yes/No1%11The documentsmust besent tothe draweebankinone lot.Yes/No1%:MT:70001:40A formof documentary credit:IRREVOCABLE:2documentarycreditnumber:100934028D-01001:3IC date of issue:2X50314:31D dateand placeof expiry:20050415P.R.OF CHINA:50applicant:SUMITOMO CORPORATION,2-2HITOTSUBASHI,CHIYODA-KUTOKYO:59beneficiary:JIANGSUNATIVEPRODUCEIMP.AND EXP.GROUP CORR,36GONG YUANROAD.NANJING THEPEOPLESREPUBLIC OFCHINA:32B amount:CURRENCY JP¥3,078,

075.0:4I-:available with/by:ANY BANKBY NEGOTIATION:42C:drafts at-DRAFT E90DAYS SIGHT:42-:drawee:THE MITSUITRUST ANDBANKING CO.LTD.HEAD OFFICE,TOKYO:43p partialshipments:PROHIBITED:43T transshipment:PROHIBITED:44A loadingin charge:CHINESE AIRPORT:44B fortransportation to:NARITA,AIRPORT:44C latestdateofshipment:20050331:45A shipmentof goods:700KGS NETOF CHINESEROYAL JELLYPRODUCTS BY LAOSHAN FACTORYIN REFRIGERATEDCONTAINER ATJP¥4,

510.00PER KGNET.LESS DISC.

2.5%CIF NARITAAIRPORT:46A:documents required:+SIGNED COMMERCIALINVOICE INQUINTUPLICATE5INDICATING APPLICANTSREF NO.MCC1-94-0120WHICH MUSTBE GIVENON ALLOTHER DOCUMENTS+PACKING LISTIN DUPLICATE+FULL SETOF CLEANAIR WAYBILLCONSIGNED TOSUMITOMOCORPORATIONTOKYO ANDMARKED FREIGHTPREPAIDAND SHOWINGSAME NAMESAS NOTIFYPARTY ASCONSIGNEE ANDINDICATING ACTUALFLIGHT DATE+FULL SETOF INSURANCECERTIFICATES ENDORSEDIN BLANK,FOR110PCT INVOICEVALUE COVERINGTHEINSTITUTE CARGOCLAUSESALL RISKS,AND THE INSTITUTE WARCLAUSES ANDTHEINSTITUTESTRIKES RIOTSANDCIVIL COMMOTIONSCLAUSE ANDLO.P.CLAIMS AREPAYABLE INJAPAN INCURRENCY OFDRAFTS.INSURANCE TOBE EFFECTEDBY SHIPPER+ORIGINAL GSPFORM A,CERTIFICATE OFNO ANTIBIOTICSAND COPIESOF CERTIFICATEOF QUALITYALSOREQUIRED:47A:additional cond.:1SHIPPING MARKSSHOULD INCLUDESUMIT INTRIANGLE.2TRANSPORT DOCUMENTSWHICH BEARREFERENCE BYSTAMP OFOTHERWISE TOCOSTS ADDITIONALTOTHE FREIGHTARE NOTACCEPTABLE.3ORIGINAL CERTIFICATEOF QUALITYCERTIFYING PRODUCTSBYLAOSHANFACTORY,MOISTURE MAX

67.0PCT ANDDECENOIC ACIDMIN

2.1PCT ISSUEDBY C.C.LB.SHOULD BEATTACHED TOTHE CARGOAND ABENEFICIARIESCERTIFICATE REQUIRED4DRAFTS TOENFACE SAMEDATE ASAIR WAYBILLAND WILLBE PAYABLEAT AFIXED DATE:71B:details ofcharges:ALL BANKINGCHARGES AREFOR ACCOUNTOF APPLICANT.:48:presentation period:DRAFTS/DOCUMENTS MUSTBE PRESENTEDWITHIN15DAYS AFTERDATE OFISSUANCE OFTRANSPORTDOCUMENTS,BUT WITHINTHE VALIDITYOF CREDIT:49confirmation instruction:YOU AREREQUESTED TOADD YOURCONFIRMATION TOTHE CREDIT.:53-reimbursement bank:THE MITSUITRUST ANDBANKING CO.,LTD.,HEAD OFFICE,TOKYO:78instructions:THE NEGOTIATINGBANK MUSTFORWARD TOUS INTLOPERATIONS ADMINISTRATIONDIV.1-1NIHONBASHIMUROMACHI2-CHOME.CHUO-KU TOKYOALL DOCUMENTSIN ONEREGISTERED AIRMAILAND TOTHE DRAWEEBANKTHE DRAFTSTOGETHER WITHCOMPLIED CERTIFICATE.ALL DRAFTSDRAWN HEREUNDER MUSTINDICATE NUMBER,DATE ANDNAME OFISSUING BANKOF THISCREDIT.。