International Trade Finance Paper 2022

A
International Trade Finance
Final Test
Part 2
Due Date: 6.00 PM, Tuesday- April 07, 2020
This Part of Exam consists of:
L/C Application
L/C Discrepancies
Total of 20 Marks
Total of 9 pages
Length of Exam: Open Till due time and date
Late submission is subject to 5 negative mark per/hour
Please:
1- Complete the L/C application Form in Font color other than black. (the form is in word
format and is fillable)
2- Find discrepancies on the L/C swift format compared to the P/I, cross out the discrepancy (to cross out,
select the text you wish to cross and then use “Strikethrough” Button (ab), the selected part should be
crossed through. Then write the correct answer in front of the discrepancy (complete answer in different
font color

International Trade Finance- Part Two
Student Name:________________________ Student ID # _______________
Due Date and time - April. 07, 2020/ 6.00 PM
1. After concluding a contract for sales of “23,000 BF of Surfaced Lumber” between; JP Furniture
MFG. Co. and HR Hardwood Supply Co., JP receives the following P/I form HR to issue a L/C.
Assuming you are JP’s employee working in import department, referring to the P/I instruction,
please:
a) Fill out the L/C application. (10 marks)
b) Comparing the P/I instruction and the L/C being opened thereafter by the issuing bank, find
10 discrepancies. (10 marks)
Page 2 of 9

HR Hardwood Supply Co
4100 Rocky Mount BLVD., Wierton, WV 00110, USA
Tel: [phone], Fax: [phone]
PROFORMA INVOICE
Invoice of: HR Hardwood Supply Co Invoice No.: HR/150313
From: Any U.S. West Port To: Fukuyama Port, Japan Date: 12th Mar. 2020
For Account and Risk of: JP Furniture MFG. Co.
521-1, Yahata, Fujieda, Tokyo, Japan
Article No. DESCRIPTION QUANTY/Pcs UNIT PRICE TOTAL AMOUNT
1 BF of Surfaced Lumber 23,000 USD 2.85 USD 65,550.00
Total Ex-Work, Wierton, WV USD 65,550.00
Inland Freight & Handling Charges USD 700.00
OCEAN FREIGHT CHARGES: USD 2,300.00
Marine Insurance at 110% of CIF USD 330.00
TOTAL BF 23,000 CIF VALUE USD 68,880.00
TOTAL: SAY US DOLLOR SIXTY-EIGHT THOUSAND EIGHT HUNDRED AND EIGHTY ONLY
Credit Amount Tolerance ±10%
PAYMENT: 100% Irrevocable Sight Letter of credit 120 DAY after shipment in our favour.
DELIVERY TIME: 45 days after receipt of applicable L/C
TRANSSHIPMENT: To be allowed
PARTIAL DRAWINGS: to be permitted
CONTRY OF ORIGIN: USA
PACKAGE: Mono-Extruded Poly Lumber Wrap
INSPECTION: SGS
VALIDITY OF P/I: August 10th 2018
BANK: Union Bank of California, 110 Wall Street,
San Francisco, CA 30010, USA
SWIFT CODE: BOFCUS33CAA
HS #: 4407.10.0068
1. BANKING CHARGES: All banking charges are for the account of buyer.
2. The letter of credit is to be AVAILABLE WITH Union Bank of California, 110 Wall Street, San Francisco, CA. 30010, USA
BY NEGOTIATION, and provide for reimbursement in the U.S. by teletransmission.
Page 3 of 9
HR