UCP 600 Test

UCP 600 applies to

• Documentary Credits only
• Standby Credits Only
• Guarantees Only
• Documentary Credits & Standby Credits
• Documentary Credits, Standby Credits & Guarantees

You as a Beneficiary have received a credit evidencing in additional condition “Applicant shall be bound by and liable to indemnify the banks against all obligations and responsibilities imposed by foreign laws and usage does not apply”. Can a credit be issued in this manner?

• Yes
• No

Negotiation means the purchase by the nominated bank of

• drafts drawn on itself
• drafts drawn on a bank other than itself

LC is restricted to BKA Bank, Jakarta, Indonesia by Negotiation. Can BKA Bank, Bandung, Indonesia negotiate the documents?

• Yes
• No

A documentary credit is available with ABC Bank, Hong Kong by negotiation at 30 days after shipment date. Which of the following actions by ABC Bank, Hong Kong will constitute negotiation, when credit compliant documents are presented? A. Forward documents to issuing bank for payment at maturity date B. Pay the beneficiary and forward documents to issuing bank C. Agree to pay the beneficiary, once the documents are accepted by the issuing bank and forward the documents to issuing bank

• B Only

• C Only

• B & C

• A & B

If a documentary credit requires presentation of a “Phytosanitary Certificate issued by a competent authority”. The phytosanitary certificate must be issued by

• Government authority
• Department of Agriculture
• Anyone except the beneficiary

LC states it is available for one month but does not give expiry date. How should the Beneficiary interpret the expiry date

• One month from date of advising
• One month from the date of issue
• One month from the date of invoice
• Any of the above

LC states shipment to be made during the middle of the month. How should this period be interpreted

• 10th to 20th day of month
• 11th to 20th day of month
• 10th to 21st day of month
• 11th to 21st day of month

LC states that shipment to be made on or about 27 September. Which of the following shipment dates would be acceptable?

• 2022-09-20

• 2022-10-02

• 2022-10-03

If a documentary credit requires that shipment to be effected “immediately” upon receipt of L/C. LC issue date is 10th January 2012 and Expiry Date is 20th January 2012. When the shipment should be effected under the L/C

• 10th to 15th Jan
• Latest by 20 Jan 2022
• within 2 days from LC advising date
• within 5 days from issuance date