Our CDCS Online Training Curriculum | CDCS Exam Pattern
Table of Contents
Explore the Curriculum
Below is a summary of the chapters, with a brief description of the content covered in each.
Section A: Core Concepts
1. The Sales Contract
This section provides the features of a sales contract, categorized as follows:
- Seller’s Name & Address
- Buyer’s Name & Address
- Full Description of Goods/Services/Performances
- Shipment/Delivery Period
- Price & Incoterms with Place of Delivery
- Method of Payment
- Documents Required
- Penalty Clauses in Case of Non-Performance
- Legal Jurisdiction
- Dispute Resolution
2. Types of Documents
This section provides a general description of the various documents used in international trade, categorized as follows:
3. Incoterms 2020
This section covers the critical aspects of all eleven Incoterms, classed under any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and Sea & Inland Waterways (FAS, FOB, CFR, CIF), categorized as follows:
- Origin and Purpose: A discussion of the history and role of Incoterms in regulating trade between buyers and sellers to avoid misunderstandings and disputes.
- Obligations of Parties: A detailed overview of the responsibilities of both buyers and sellers under each Incoterm.
- Transfer of Risks: Examines how risk is transferred between parties for each Incoterm.
- Key Differences (Incoterms 2010 vs 2020): Highlights the major updates and changes from Incoterms 2010 to Incoterms 2020.
4. Payment Methods
This section highlights the various payment methods used in international trade, focusing on their relevance and the risks they pose to both parties. The key methods covered include:
5. Risks in International Trade
This section examines the various risks in international trade and provides strategies for mitigating them. Key risks include:
- Country/Political Risks
- Convertibility Risks
- Cultural Risks
- Commercial Risks (Counterparty Risks)
- Market Risks
- Transportation Risks
- Frauds
- Contract Structuring Risks
6. Issuance of Documentary Credits
This section provides a detailed overview of the key aspects involved in the issuance of letters of credit (LC), including:
- LC Application
- Pre-Issuance Considerations for the Issuing Bank
7. Undertakings of the Issuing and Confirming Banks
This section provides a detailed overview of the roles and obligations of banks in documentary credit transactions, focusing on the key responsibilities of both the issuing bank and the confirming bank.
8. Advising and Confirmation
This section explains the processes of advising and confirming letters of credit, along with compliance and regulatory checks to be performed. Key aspects include:
- Advising Letters of Credit
- Confirming Letters of Credit
9. Amendments
This section provides comprehensive coverage of the amendment procedures, including the advising of amendments and the acceptance or rejection of amendments by the beneficiary.
10. Presentation, Examination, and Notice of Refusal
This section discusses UCP 600 compliance for document presentation and examination, along with the notice of refusal in the case of non-compliant presentations.
11. Understanding SWIFT MT 700
This section provides an in-depth understanding of the MT 700 message format and its fields, including the distinction between mandatory and optional fields.
12. Drafts and Maturity Date Calculations
This section covers the key components of drafts, including the party on whom drafts are to be made, as well as the calculation of maturity dates based on the tenor after sight or the tenor after the shipment date, in both complying and non-complying presentations.
13. Invoice
This section focuses on the invoice requirements in documentary credit transactions and its role in the payment process, covering all requirements under both UCP 600 and ISBP.
14. Transport Documents
This section provides a detailed explanation of various transport documents used in international trade and their role in documentary credit transactions. Key documents include:
- Bill of Lading (B/L)
- Non-Negotiable Sea Waybill
- Charter Party Bill of Lading
- Multimodal Transport Document
- Air Waybill
- Road, Rail, and Inland Waterways Transport Documents
- Courier Receipt, Postal Receipt, or Certificate of Posting
- Overview of Transport Documents (Comparative analysis of features of transport documents)
15. Insurance Documents
This section covers the role of insurance documents under CIF or CIP terms. Key documents include:
16. Other Documents
This section covers requirements for documents covered in ISBP other than Invoice, Transport Documents, and Insurance Documents.
- Certificate of Origin
- Phytosanitary Certificate
- Fumigation Certificate
- Health Certificate
- Quality & Quantity Certificate
17. General Provisions for Examination of Documents
This section provides a comprehensive overview of the general provisions and interpretations covered in UCP 600 and ISBP (International Standard Banking Practice) relevant to the preparation and examination of documents in documentary credit transactions.
18. Special Types of Letters of Credit
This section provides an overview of the special types of Letters of Credit (LCs), explaining the features, uses, and practical applications of each:
- Red Clause Letter of Credit
- Green Clause Letter of Credit
- Revolving Letter of Credit
- Back-to-Back Letter of Credit
- Transferable Letter of Credit
- Assignment of Proceeds (Not a type of LC)
19. Shipping Guarantee (SG) and Letter of Indemnity (LOI)
This section explores the practical uses of Shipping Guarantees (SGs) and Letters of Indemnity (LOIs) in international trade:
20. Uniform Rules for Bank-to-Bank Reimbursements (URR 725)
This section explains the application of URR 725 rules when a credit provides reimbursing bank details and is subject to these rules, covering key issues such as:
- Reimbursement Authorisation
- Reimbursement Undertaking
- Reimbursement Claim
- Pre-notification of claim
- Pre-debit notification
21. e-UCP (Electronic Uniform Customs and Practice for Documentary Credits)
This chapter covers the functionality and application of the presentation of electronic documents when the credit is subject to e-UCP rules, including definitions such as electronic record, electronic presentation, and complying presentation.
22. Standby Letters of Credit (ISP98)
This chapter focuses on Standby Letters of Credit (SBLCs), governed by the International Standby Practices (ISP98), highlighting their purpose, types, and practical applications:
Purpose of Standby Letters of Credit
A Standby Letter of Credit (SBLC) acts as a payment guarantee, allowing the beneficiary to claim payment from the issuing bank if the applicant fails to fulfill their contractual obligations.
Types of Standby Letters of Credit
- Advance Payment Standby LC
- Open Account Standby LC
- Direct Pay Standby LC
- Financial Standby LC
- Insurance Standby LC
- Counter Standby LC
- Bid Standby LC
- Performance Standby LC
23. Money Laundering, Terrorist Financing & Economic Sanctions
This chapter explores the implications of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations on trade finance. It also examines how economic sanctions can influence the payment obligations under a documentary credit, highlighting the compliance challenges and risks involved.
24. Dispute Resolution
This chapter examines the options available to parties in resolving disputes arising under documentary credits. It also highlights ICC services, including Opinions, DOCDEX, and Arbitration, as effective mechanisms for dispute resolution.
Section B: Practical Simulations
This section focuses on the practical application of processes involved in documentary credit operations and includes assessments to test your understanding of the curriculum.
Assessments:
Grand Test 1
A comprehensive test designed to evaluate your understanding of the entire curriculum, following the CDCS test pattern.
Grand Test 2
A comprehensive test designed to evaluate your understanding of the entire curriculum, following the CDCS test pattern.
Certification
Upon completing our course, candidates will be awarded the Certificate in Documentary Credits (CDC) by IFTS Learning. This certification demonstrates your expert knowledge in documentary credits and builds confidence, providing a strong foundation for taking up the globally recognized CDCS exam conducted by LIBF. Our course ensures you are thoroughly prepared, making your investment in the CDCS exam worthwhile.