Level 4 Certificate for Documentary
Credit Specialists (CDCS®) – 601/1159/8
Qualification Specification (2015-2016)
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RATIONALE
A Qualification Specification is a concise description of a qualification offered by ifs University College
and provides information to all stakeholders, including potential and current students. All qualifications
offered by ifs University College are validated and regularly reviewed, based on information set down
in each qualification specification.
CONTENTS
Page
1.
Accreditation information
3
2.
Learning hours
4
3.
Aims of the CDCS
4.
Skills developed through the CDCS
5.
Objectives of the CDCS
6
6.
Structure of the CDCS
®
6
7.
Entry requirements
6
8.
Methods of study
®
4
®
5
®
7
®
9.
Assessment methodology of the CDCS
7
10.
Grading
7
11.
Assessment resits
8
12.
Learning resources
8
13.
Syllabus
8
ifs University College is a registered charity, incorporated by Royal Charter.
2
The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
1.
1
Accreditation information
Qualification title
Level 4 Certificate for Documentary Credit Specialists
®
(CDCS )
Ofqual qualification number
601 / 1159 / 8
Qualification level
4
European Qualifications
Framework (EQF) level
5
Regulation start date
29 August 2014
Operational start date
01 October 2014
Offered in
England, Wales, Northern Ireland and internationally
Assessment available in English
Yes
Assessment available in Welsh
No
Assessment available in Irish
No
Sector subject area
15.1 Accounting and Finance
Purpose
D. Confirm occupational competence and / or ‘licence
to practice’
Sub-purpose
D1. Confirm competence in an occupational role to the
standards required
Total credits
30
Minimum credits at / above level
30
Minimum learning hours
150
Maximum learning hours
300
Overall grading type
Fail / Pass / Distinction
Assessment methods
Multiple-choice examination
Qualification description
The Certificate for Documentary Credit Specialists
consists of two mandatory units.
Age ranges
16–18; 19+
1
150 guided learning hours for those students resitting the qualification as part of their recertification.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
1.1
Table 1 QCF Level 4 level descriptors
DESCRIPTION
SUMMARY
Achievement at Level 4 reflects the ability to identify and use relevant
understanding, methods and skills to address problems that are well
defined but complex and non-routine. It includes taking responsibility
for overall courses of action as well as exercising autonomy and
judgement within fairly broad parameters. It also reflects
understanding of different perspectives or approaches within an area
of study or work.
KNOWLEDGE AND
UNDERSTANDING
Use practical, theoretical or technical understanding to address
problems that are well defined but complex and non-routine.
Analyse, interpret and evaluate relevant information and ideas.
Be aware of the nature and scope of the area of study or work.
Have an informed awareness of different approaches within the area
of study or work.
APPLICATION AND
ACTION
Address problems that are complex and non-routine while normally
fairly well defined.
Identify, adapt and use appropriate methods and skills.
Initiate and use appropriate investigation to inform actions.
Review the effectiveness and appropriateness of methods, actions
and results.
AUTONOMY AND
ACCOUNTABILITY
Take responsibility for courses of action, including, where relevant,
responsibility for the work of others.
Exercise autonomy and judgement within broad but generally welldefined parameters.
2.
Learning Hours
2.1
The current recommended learning hours are 300 which, under Ofqual regulations, make
®
CDCS a Certificate.
3.
Aims of the CDCS®
3.1
The aims of the CDCS are to:
®
i.
introduce students to documentary credit transactions by focusing on the types, products
and processes used in transactions;
ii.
highlight the importance of rules, standards and guidelines for documentary credit
transactions and the products available to assist these transactions;
iii. enable students to gain an appreciation of the commonly used documents and trade terms;
iv. provide students with an understanding of the roles, obligations and relationships between
parties to documentary credits;
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
v.
provide an understanding of the risks involved in documentary credit transactions and the
ability to manage those risks;
vi. familiarise students with how the rules and guidelines can be breached and the implications
of such breaches;
vii. provide students with the ability to manage documentary credit transactions and the
relationship between parties using the transactions;
viii. provide students with an understanding of how to check the accuracy of documents to
enable their correct usage in documentary credit transactions;
ix. familiarise students with the links between theory and practice; and,
x.
provide opportunities for students to develop the necessary skills and competencies to
move on to further study or employment.
4.
Skills developed through the CDCS®
4.1
Knowledge and understanding elements of the CDCS will provide students with the
®
ability to critically analyse the:
i.
environment of documentary credits, with a focus on the trade terms, products and
processes;
ii.
roles and responsibilities of parties involved in documentary credits;
iii. current technical language, tools, methods and practices of documentary credits;
iv. risks involved in documentary credits and how to mitigate them; and,
v.
4.2
rules and regulations involved in documentary credit products.
®
Subject-specific practical / professional elements of the CDCS will provide students
with the skills to:
i.
use appropriate tools and methods to check documentary credit documents;
ii.
apply appropriate rules and guidelines to a variety of documentary credit transaction
scenarios;
iii. analyse documentary credit products and documents and reflect upon their desirability and
effectiveness in a variety of scenarios; and,
iv. understand the problems and risks that can arise in documentary credit transactions, and
how these problems can be controlled and / or mitigated.
4.3
®
Intellectual skills developed by the CDCS will provide students with the ability to:
i.
locate, extract and analyse information from different sources;
ii.
apply higher-level cognitive skills of reflective practice, including analysis and evaluation;
iii. utilise problem-solving and decision-making skills; and,
iv. understand the interrelationships between the various subject disciplines and assimilate
these coherently to provide effective solutions.
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4.4
®
Transferable skills and personal qualities developed by the CDCS will provide students
with the ability to:
i.
use appropriate information from a range of sources;
ii.
learn independently and enhance skills of self-reflection, criticality and self-managed study;
and,
iii. structure and communicate ideas logically and coherently.
5.
Objectives of the CDCS®
5.1
On completion of the CDCS qualification, students will be able to:
®
i.
demonstrate a level of expertise in documentary credits that is recognised worldwide;
ii.
improve their knowledge and understanding of the complex issues associated with
documentary credit best practice;
iii. develop the skills to apply their knowledge in the workplace and to perform at a high level;
®
iv. use the professional designation CDCS ; and,
v.
5.2
improve their career and promotion prospects.
®
As well as developing knowledge, the CDCS assists in developing the ability to:
i.
analyse and evaluate information;
ii.
develop core personal skills including communication, numeracy and IT;
iii. formulate appropriate responses to resolve defined problems;
iv. convey information clearly, concisely and accurately;
v.
structure information, options and recommendations in a clear and logical order;
vi. develop skills in examination technique;
vii. apply and build on previous learning and experience; and,
viii. develop critical thinking and critical evaluation.
6.
Structure of the CDCS®
6.1
CDCS is made up of one mandatory unit which needs to be successfully completed in order
®
for the student to achieve the certificate:
i. Principles and Practices of Documentary Credit Transactions
7.
Entry requirements
7.1
There are no specified entry requirements. However, individuals need to be satisfied of their
ability to study in English at Level 4.
ifs University College is a registered charity, incorporated by Royal Charter.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
8.
Methods of study
8.1
CDCS is delivered via distance learning.
8.2
Materials and additional information are available by accessing my ifslearning.
9.
Assessment methodology of the CDCS®
9.1
The unit is assessed in a single examination lasting three hours. The examination paper is split
®
into two sections.
9.2
Section A is assessed by 60 multiple-choice questions, with one mark available for each correct
answer.
9.3
Section B is assessed by:
i.
10 multiple-choice questions, with one mark available for each correct answer.
ii.
Three in-basket exercises comprising five multiple-choice questions linked to a set of
documents, with one mark available for each correct answer.
iii.
Three
simulation
document-checking
exercises,
candidates
must
identify
five
discrepancies from a choice of 10. Each discrepancy correctly identified is worth one mark.
A total of five marks are available for each simulation exercise.
9.4
A total of 100 marks are available.
10.
Grading
10.1
The qualification will be graded fail / pass / distinction :
2
Grade
10.2
Raw mark
Fail
0–69
Pass
70–94
Distinction
95–100
To achieve an overall pass, students must achieve a mark of 70% overall (and 60% for Section
B).
10.3
There is no section pass mark for Section A.
10.4
Credit cannot be claimed for gaining 60% in Section B but failing to gain 70% overall, only
overall achievement is graded.
2
The pass mark / grade bands are reviewed each examination session to ensure fairness to students in cases where
examination difficulty varies. Adjustments may be made accordingly.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
11.
Assessment resits
11.1
Students are allowed to resit the unit in accordance with the published ifs policies.
12.
Learning resources
12.1
Students will be provided with the following learning resources:
i. online access via my ifslearning to learning materials and to ifs KnowledgeBank (virtual
library);
ii. unit syllabus;
iii. student handbook;
iv. study text;
v. specimen paper; and,
vi. student-led forum.
13.
Syllabus
13.1
Specification
Unit title
Principles and Practices of Documentary Credit Transactions
Ofqual unit reference number
K / 506 / 0499
Unit level
4
Learning hours
300
Unit credit value
30
Unit aims
i.
This unit introduces students to documentary credit
transactions by focusing on the types, products and
processes used in transactions.
ii.
It highlights the importance of rules, standards and
guidelines for documentary credit transactions and the
products available to assist these transactions.
iii.
Students will gain an appreciation of the commonly used
documents and trade terms.
iv.
Students will gain an understanding of the roles, obligations
and relationships between parties to documentary credits.
v.
Students will gain an understanding of the risks involved in
documentary credit transactions and be able to manage
those risks.
vi.
Students will understand how the rules and guidelines can
be breached and the implications of such breaches.
vii. Students will be able to manage documentary credit
transactions and the relationship between parties to the
transactions.
viii. Students will understand how to check the accuracy of
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
documents to enable their correct usage in documentary
credit transactions.
13.2
Unit 1 learning outcomes / assessment criteria
Learning outcome (LO)
Assessment criteria (AC)
The learner when awarded credit for this
Assessment of the LOs will require a learner to demonstrate that
unit will:
they can:
1.1 Distinguish between the different types of payment method and
credit, the roles and obligations of parties involved and the
1. Be able to utilise the rules relating to
documentary credits and understand
documents and related products used in documentary credit
the features, documents, life cycle, and
transactions.
1.2 Apply the rules, standards, guidelines and trade terms used in and
the roles of the various parties to a
credit.
identify the risks and problems that can affect documentary credit
transactions.
2.1 Apply appropriate rules and trade terms to the management of
documentary credit transactions.
2. Be able to manage documentary credit
2.2 Check the accuracy of documents used in documentary credit
transactions and associated risks.
transactions.
13.3
Unit 1 syllabus overview
Learning Outcome
Syllabus
Main types, characteristics and uses of documentary credits:
•
Understanding of the term documentary credit
•
A basic documentary credit transaction (including generic flow chart of
this process)
1.
•
Types of documentary credit
•
Primary characteristics of documentary credits
•
Secondary characteristics of documentary credits:
-
Revolving credits
rules, documents and
-
Instalment
parties to documentary
-
Advance payments
credit transactions and how
-
Transferable
-
Evergreen
-
Clean
-
Direct pay
Know the features, life cycle,
they are applied.
•
Categorisation of documentary credit by type and characteristic
•
Commercial documentary credits
•
Standby letters of credit
Roles and obligations of the parties to documentary credit transactions and
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Learning Outcome
Syllabus
the relationships between them:
•
•
•
Parties to documentary credits roles and responsibilities:
-
Issuing bank
-
Beneficiary
-
Applicant
-
Non-bank issuers
-
Confirming bank
-
Advising bank
-
Negotiating bank
-
Paying bank
-
Accepting bank
-
Reimbursing bank
-
Transferring bank
-
Nominated bank
-
Presenting bank
Banks roles and obligations:
-
Issuing bank
-
Confirming bank
-
Advising bank
-
Negotiating bank
-
Paying bank
-
Accepting bank
-
Reimbursing bank
-
Transferring bank
-
Nominated bank
-
Presenting bank
-
Beneficiary
Relationship of parties in respect of payment of conforming documents
and non-payment of non-conforming documents
•
Roles and responsibilities in reimbursement
Types and methods of payment and credit used in documentary credit
transactions:
•
Types of payment:
-
Sight
-
Deferred
-
Negotiation
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Learning Outcome
Syllabus
-
Acceptance
•
Transmission of proceeds
•
Types of credit
•
With and without recourse
•
The autonomy of a documentary credit as a payment mechanism
Types of transport, commercial and financial documents used in
documentary credit transactions and their requirements under ICC rules:
•
Characteristics, processing and rules that apply to transport
documents:
-
Bill of Lading
-
Charter Party Bill of Lading
-
Non-negotiable Seaway Bill
-
Multimodal Transport Document
-
Air Transport Document
-
Road, Rail or Inland Waterway Transport Document
-
Forwarder’s Cargo receipt, Mate’s Receipt and Consolidator’s
Receipt
•
•
-
Post Receipt or Certificate of Posting
-
Courier or Expedited Delivery Service Document
Financial and Commercial documents:
-
Draft / bill of exchange
-
Commercial Invoice
-
Insurance Document
-
Weight Certificate
-
Certificate of Origin
-
Packing Lists
-
Inspection Certificate
Documents for official purposes and checking mechanisms
The related products used in documentary credit transactions:
•
Letter of Indemnity
•
Air Way Release
•
Shipping Guarantee
•
Assignment of Proceeds
•
Participation and Syndication
•
Refinance Credits
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Learning Outcome
Syllabus
•
Reimbursement undertaking
Industry rules, standards, guidelines and trade terms that govern the delivery
of documentary credit transactions:
®
•
Incoterms 2010
•
UCP 600 – Uniform Customs and Practice for Documentary Credits
•
ISP98 – International Standby Practices
•
URR 725 – Uniform Rules for bank-to-bank reimbursement under
documentary credits
ICC decision on original documents (Appendix to ICC publication 645 –
•
ISBP)
•
ISBP 745
•
eUCP
The ways in which documentary credit transaction rules and regulations can
be breached and the implications of such breaches. Including:
•
Money Laundering
•
Sanctions
•
Terrorist Financing
The processes and challenges involved in documentary credit transactions:
•
Processes and activities associated with:
-
Sales agreement / contract of sale
-
Issue
-
Pre-advise
-
Advise
-
Confirm
-
Amend
-
Transfer
- Present
- Examine
- Pay / Reject
- Claim
- Reimburse Funds
- Cancel
•
Presentation, Examination and Settlement / Rejection
•
Identifying and handling discrepant documents
•
Electronic presentations
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Learning Outcome
Syllabus
•
Problems that can arise during the documentary credit transaction
process
The risks involved in documentary credit transactions.
•
•
•
•
2.
Be able to manage
documentary credit
transactions.
13.4
Types of Risk
-
Operational / UCP 600
-
Credit
-
Foreign Exchange
-
Fraud
-
Legal
-
Political
Other risks / considerations
-
Money Laundering
-
Sanctions
-
Terrorist Financing
-
Credit Risk Assessment / Management
Risks to the parties to documentary credits:
-
applicant
-
issuing bank
-
beneficiary
-
advising bank
-
nominated bank
-
confirming bank
-
reimbursing bank
How risks can be controlled
Apply and analyse the transport, commercial and financial documents used
in documentary credit transactions in order to recommend appropriate
courses of action and manage documentary credit transactions.
®
CDCS assessment methodology
The assessment will have two sections:
•
Section A – 60 multiple-choice questions. This component of the examination is worth 60
marks.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
•
Section B – 10 multiple-choice questions, three in-basket exercises each with five attached
multiple-choice questions and three simulation exercises where five discrepancies need to
be identified from a choice of 10. This component of the examination is worth 40 marks.
•
The examination will be worth a total of 100 marks.
•
Students must achieve 70% of the total 100 marks available to pass the qualification (and
60% for section B).
•
Credit cannot be claimed for gaining 60% in section B but failing to gain 70% overall, only
overall achievement is graded.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
About the ifs University College
ifs University College is the university for financial education. London-based, it is a registered charity
incorporated by Royal Charter that exists to ensure a flow of talented individuals into the financial
services industry and related sectors. Its qualifications enable individuals to reach their full professional
potential and encourage appropriate and ethical practice. It also works to enhance the financial
wellbeing of future generations through its unique personal finance qualifications and wider financial
capability initiatives.
ifs University College
ifs House 4-9 Burgate Lane
Canterbury
Kent CT1 2XJ
T:
E:
W:
+44 (0) 1227 818609 (option 1)
customerservices@ifslearning.ac.uk
www.ifslearning.ac.uk
About the International Chamber of Commerce
The International Chamber of Commerce is the largest representative business organisation in the
world. The ICC has hundreds of thousands of member companies across +130 countries covering
interests spanning across every sector of private enterprise. The ICC Banking Commission is the
largest commission within the ICC and is a leading ruling body for the banking industry globally, gaining
a reputation for being the most authoritative voice in the field of trade finance.
International Chamber of Commerce
33-43 avenue du Président Wilson
75116 Paris,
France
T:
E:
W:
+33 (0) 1 49 53 28 28
icc@iccwbo.org
www.iccwbo.org
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.