LIBF Level 4 Certificate for

Documentary Credit Specialists (CDCS®)

Qualification Specification

The London Institute of Banking & Finance is a registered charity, incorporated by Royal Charter.
Table of Contents

PURPOSE OF THE QUALIFICATION 3

WHY STUDY THE LIBF LEVEL 4 CERTIFICATE FOR DOCUMENTARY CREDIT SPECIALISTS (CDCS®)? 3
OBJECTIVE 3
KEY CONTENT AREAS 3
LEARNING OUTCOMES 3
KEY SKILLS DEVELOPED 4
ENTRY REQUIREMENTS 4
RECOGNITION OF PRIOR LEARNING 4
PROGRESSION AND PREPARATION FOR FURTHER STUDY 4
APPRENTICESHIPS 5
PREPARATION FOR EMPLOYMENT 5
STRUCTURE 5
TOTAL QUALIFICATION TIME (TQT) 6
LEARNING RESOURCES 6
WHAT TO DO BEFORE THE ASSESSMENT 6
ASSESSMENT 7
QUALIFICATION GRADING 7
RE-SIT ATTEMPTS 7

APPENDICES 8

APPENDIX 1 – REGULATION DETAIL 8

APPENDIX 2 – UNIT 1 – PRINCIPLES AND PRACTICES OF DOCUMENTARY CREDIT TRANSACTIONS (PDT) 9

Please note: This document is uncontrolled when printed.

Please always review the latest document available through the website

Page 2 of 15
Purpose of the qualification

Why study the LIBF Level 4 Certificate for Documentary Credit Specialists (CDCS®)?
The Certificate for Documentary Credit Specialists (CDCS®) is a professional qualification recognised
worldwide as the benchmark of competence for international practitioners; it was primarily
designed for students with at least three years experience working with documentary credits. Its
purpose is to enable documentary credit practitioners to demonstrate practical knowledge and
understanding of the complex issues associated with documentary credit practice.
CDCS® develops the knowledge and skills required to accurately check documents and manage
documentary credit transactions. Within this, it provides a core understanding of documentary
credits and the products, parties, processes and rules that underpin transactions. As well as
developing the ability to identify irregularities and risks.

Objective
The CDCS® will enable you as a documentary credit practitioner to gain a practical knowledge and
understanding of the complex issues associated with documentary credit practice.

Key content areas

• Types, characteristics and uses of documentary credit and standby letters of credit.
• Rules and trade terms.
• Parties to documentary credit transactions and their roles and obligations.
• Types and methods of payment / credit used in documentary credit transactions.
• Types of transport, commercial and financial documents used in documentary credit
transactions.
• Related products including letters of indemnity.
• Implications of breaching rules including money laundering and terrorist financing.

Learning outcomes
LO1 Be able to utilise the rules relating to documentary credits and understand the features,
documents, life cycle, and the roles of the various parties to a credit.
LO2 Be able to manage documentary credit transactions and associated risks.

Page 3 of 15
Key skills developed
The qualification will encourage you to:
• analyse documentary credit products and reflect upon their desirability and effectiveness in
a variety of scenarios;
• apply appropriate rules and guidelines to a variety of documentary credit transaction
scenarios;
• develop an understanding of current technical language, methods and practices of
documentary credit transactions;
• select and analyse appropriate data and information from a range of sources; and,
• increase your ability to work and learn independently.

Entry requirements
There are no specified entry requirements. However, you need to be satisfied of your ability to study
in English at Level 4.

Recognition of prior learning

In line with the London Institute of Banking & Finance regulations, as CDCS® is a single unit
qualification, recognition of prior learning does not apply.

Progression and preparation for further study

Professional recertification
When you have successfully completed the CDCS® qualification, the CDCS® designation remains valid
for three years. To retain the designation after this period, you are required to either continuing
professional development (CPD) in order to recertify, or re-take and pass the examination.
1. For those recertifying up to and including the 31 October 2019 - 24 CPD Learning hours /
PDUs are required to recertify.
2. Those recertifying at 30 April 2020 and beyond will be required to submit 36 CPD Learning
hours / PDUs to recertify successfully.

The recertification programme allows you to demonstrate how you have carried out learning
activities which have enhanced your prior knowledge and skills in the area of International Trade
Finance. Such activities are known as CPD - Continuing Professional Development - and include
participation in events such as: workshops; courses; seminars; webinars as well as e-learning and self
directed research. CPD is vital in ensuring your knowledge of International Trade Finance is always

Page 4 of 15
up to date. More information about the recertification programme can be found on the course
website.

Further / additional study

If you wish to develop a wider understanding of international trade and finance the Certificate in
International Trade and Finance (CITF ®) is designed to enable trade, export and commodity
executives to gain a thorough (introductory) understanding of key procedures, practices and
legislation in trade finance on an international level.

If you wish to develop your professional / specialist knowledge further the Certificate for Specialists
in Demand Guarantees (CSDG®) has been designed for professionals that use demand guarantees in
everyday work. The certificate provides the key knowledge and skills needed to operate effectively
in a highly technical area of international trade.

Apprenticeships
CDCS® is not currently available through an apprenticeship framework or standard.

Preparation for employment

If you are already working with documentary credits then this qualification is designed for you; you
would be expected to have already gained three years industry experience prior to commencing
your studies. CDCS® is a professional qualification recognised worldwide as the benchmark of
competence for international practitioners. As such it does not prepare you for employment.
While it is intended for experienced practitioners, the qualification could also be used to gain wider
experience / knowledge in this sector, to transfer into the sector and for continuing professional
development (CPD) purposes which could therefore qualify you to work in another field.

Structure
CDCS® is made up of one mandatory unit which must be successfully completed in order for you to
achieve the certificate:

Unit 1 – Principles and Practices of

Certificate for Documentary
Documentary Credit Transactions (PDT)
Credit Specialists (CDCS®)

Page 5 of 15
The detailed unit profile is available at Appendix 2 to this document and latest versions are always
available through our course website.
Total Qualification Time (TQT)
Total Qualification Time (TQT) is a prediction of the total time a student with no prior knowledge
might need to complete the course.

TQT consists of two elements, Guided Learning (GL) and all other hours:
• GL is time spent studying under the immediate guidance of supervision of a teacher.
• All other hours include hours spent unsupervised in research, learning, e-learning, e-
assessment, completing coursework, completing homework, exam preparation, and formal
assessments.

CDCS® is primarily considered as a self directed study qualification with planned examination
sessions.
Guided Learning Hours 3 hours
Other hours 289 hours
Total Qualification Time 292 hours

Learning resources
You will be provided with the following learning resources:
• online access via MyLIBF- www.myLIBF.com to learning materials and to KnowledgeBank
(virtual library);
• online content
• unit syllabus;
• e-quiz;
• specimen paper; and,
• student-led forum.

What to do before the assessment

You must be registered to sit an examination managed by you. Examinations are sat electronically at
Pearson VUE test centres across the globe or via Remote Invigilation in permitted locations where you
can sit your assessment remotely. Please visit the Pearson VUE website for further information.

Page 6 of 15
It is recommended that exams are booked two months in advance of the date you wish to sit.
However, subject to availability, an examination can be booked as little as two working days in
advance. Examinations can be booked over the phone or via the Pearson VUE website.

To prepare for the assessment, you should make use of all learning resources.

Assessment
The unit is assessed through a single three hour and 15 minute examination consisting of a
combination of Multiple Choice Questions (Part A) and document checking exercises (Part B). A total
of 100 marks are available. The pass mark for the examination is 70% of the available marks; you
must also achieve 60% of the marks available in section B to pass the qualification. The structure of
the assessment ensures that all aspects of the course content are subject to external examination
under strict examination conditions.

Qualification grading
The overall qualification will be graded Pass / Distinction. You must achieve a mark of 70% overall (and
60% for Section B).

The qualification grade boundaries are as follows:

Grade Raw mark

Pass 70–94
Distinction 95–100

Grade classifications are pre-determined and align to the published grade descriptors available to
learners.

However, the grade classifications may be subject to change under the jurisdiction of the assessment
board where this is necessary to maintain standards of validity.

Re-sit attempts
You are allowed to resit the unit in accordance with the published London Institute of Banking &
Finance policies. Full terms and conditions are available on our website.

Page 7 of 15
Appendices

Appendix 1 – Regulation detail

This document describes the regulation detail that is applicable to the qualification.

Qualification title Level 4 Certificate for Documentary Credit Specialists

(CDCS®)
Ofqual qualification number 601/1159/8
Qualification level 4
European Qualifications 5
Framework (EQF) level
Qualification Type Occupational Qualification
Regulation start date 29 August 2014
Operational start date 01 October 2014
Regulated in England and Northern Ireland
Offered 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 29
Minimum credits at / above level 29
Guided learning hours 3
Total qualification time 292
Overall grading type Pass / Distinction
Assessment methods Multiple-choice examination
Qualification description The Certificate for Documentary Credit Specialists
consists of one mandatory unit.

Age ranges 16–18; 19+

Page 8 of 15
Appendix 2 – Unit 1 – Principles and Practices of Documentary Credit Transactions (PDT)
A description of Unit 1 (PDT) that provides detail on syllabus content, learning outcomes and
assessment criteria, and specific unit level descriptors.

Principles and Practices of Documentary Credit Transactions (unit 1)

Unit narrative
This unit highlights the importance of rules, standards and guidelines for documentary credit
transactions and the products available to assist these transactions. You will be introduced to
documentary credit transactions by focusing on the types, products and processes used in
documentary credit transactions. You will gain an appreciation of the commonly used documents
and trade terms. You will understand the roles, obligations and relationships between parties to
documentary credits and be able to manage documentary credit transactions and the relationship
between parties to the transactions. The unit will also cover how the rules and guidelines can be
breached, the implications of such breaches, the risks involved in documentary credit transactions
and how to manage those risks.

Studying PDT you will need to apply the knowledge gained to practical exercises designed to test
your ability to check the accuracy of documents to enable their correct usage in documentary credit
transactions.

Unit profile
Unit title Unit 1: Principles and Practices of Documentary Credit Transactions
(PDT)
Ofqual unit reference K/506/0499
number
Unit level 4
Unit credit value 29
Typical study hours 292

Page 9 of 15
Unit 1 assessment methodology

i. The assessment of Unit 1 will have two components:

a. Part A – 60 multiple-choice questions. This component of the examination is

worth 60 marks.

b. Part B – This component of the examination is worth 40 marks.

i. 10 multiple-choice questions, with one mark available for each correct

answer

ii. three simulation document-checking exercises, you must identify five

discrepancies from a choice of 10. Each discrepancy correctly identified
is worth two marks. A total of ten marks are available for each
simulation exercise.

c. The examination will be worth a total of 100 marks.

ii. To achieve an overall pass, you must achieve a mark of 70% overall (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.

Unit 1 learning outcomes / assessment criteria

Learning outcome (LO) Assessment criteria (AC)

The learner when awarded credit Assessment of the LOs will require a learner to
for this unit will: demonstrate that they can:
1.1 Distinguish between the different types of payment
Be able to utilise the rules relating to
documentary credits and understand method and credit, the roles and obligations of parties
the features, documents, life cycle, involved and the documents and related products
and the roles of the various parties used in documentary credit transactions.
to a credit.
1.2 Apply the rules, standards, guidelines and trade terms

used in and identify the risks and problems that can

affect documentary credit transactions.

2.1 Apply appropriate rules and trade terms to the

Be able to manage documentary
credit transactions and associated management of documentary credit transactions.
risks. 2.2 Check the accuracy of documents used in

documentary credit transactions.

Page 10 of 15
Unit 1 syllabus

UNIT 1 SYLLABUS
LOs / ACs
LO1: Be able to utilise the rules relating to documentary credits and understand the
features, documents, life cycle, and the roles of the various parties to a credit.
AC1.1 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)
• Types of documentary credit
• Primary characteristics of documentary credits
• Secondary characteristics of documentary credits:
- Revolving credits
- Instalment
- Advance payments
- Transferable
- Evergreen
- Clean
- Direct pay
• 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 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

Page 11 of 15
 - 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 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

Page 12 of 15
 - 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
• Reimbursement undertaking
AC1.2 Industry rules, standards, guidelines and trade terms that govern the delivery of
documentary credit transactions:
• Incoterms® 2020
• 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
• 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

Page 13 of 15
 - Present
- Examine
- Pay / Reject
- Claim
- Reimburse Funds
- Cancel
• Presentation, Examination and Settlement / Rejection
• Identifying and handling discrepant documents
• Electronic presentations
• Problems that can arise during the documentary credit transaction process

The risks involved in documentary credit transactions.

• 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

Page 14 of 15
LO2: Be able to manage documentary credit transactions and associated risks.
AC2.1 Apply appropriate rules and trade terms to documentary credit transactions:

• For example – Incoterms® 2020, UCP 600, ISBP 745, ISP98, URR 725
AC2.2 Check the accuracy of documents used in documentary credit transactions:
• 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.

Page 15 of 15