Studying for the Examination
Candidates prepare for the CDCS® examination through independent study using the study text produced by the Institute of Financial Services and BAFT-IFSA. All questions will be documented to the study text.
When you register you will receive the following:
- Detailed study text - the study text has been developed by the Institute and BAFT-IFSA in conjunction with ICC experts and industry representatives and provides the main body of knowledge required for the examination. The study text has been updated to incorporate UCP 600 and other revisions.
- CDCS® Candidate Study Guide - contains sample examination questions, study tips and key terms that will help you prepare for the examination.
What is the CDCS® Examination Format?
The content of the CDCS® examination is based on the results of a job analysis study that identified key responsibilities of a documentary credit practitioner and areas of knowledge and skills required for competent practice.
To earn the professional designation you are required to pass a three-hour examination that is designed to test your knowledge and its application to practical situations. The examination is based on an English study text. With the Institute outside the North and South America, the examination is paper and pencil. With the BAFT-IFSA in the US, Canada, Mexico and Latin America, the examination is electronically tested in BAFT-IFSA approved sites.
Section A
83 multiple-choice questions based on the CDCS® content outline.
Documentary credit groups
- Types and Uses of DCs - Includes definition of the purposes, types and uses of DCs, including commercial and standby credits.
- Parties to the Credit: Roles, Responsibilities and Risks - Includes identification of the parties to a DC, understanding of the role of the bank and its obligations, knowledge of the individual roles and responsibilities and risks of all potential parties to a DC.
- Types of Payment - Includes knowledge of the types of payment under DCs, distinguishing between types of credits and the respective parties involved in credits.
Characteristics of DCs
- Primary - Includes an understanding of the basic features of each type of primary credit, commercial and standby, including revocable, irrevocable and transferable credits.
- Specialty - Includes and understanding of the basic features of each type of specialty credit, identification of other types of DC and comparing and contrasting how different kinds of credits work in practice.
Applicable rules and local law
- Requires you to demonstrate a working knowledge of the scope and application of applicable rules, local law and regulations. Covers UCP 600, URR 725 - ICC Uniform Rules for Bank-to-Bank Reimbursements Under Documentary Credits, Incoterms® 2010, S.W.I.F.T. User Manual, and the International Standby Practices Rules.
Section B
Consists of 37 multiple-choice questions based on a selection of case studies, simulations and analysis questions. This section requires you to demonstrate your skills in information gathering, interpretation and decision making.
Passing the examination
Overall the examination comprises 120 questions. To pass you must achieve the required pass mark in Section B as well as achieving the overall pass mark. The pass mark for CDCS® may vary from year to year to maintain an equivalent level of performance to achieve a pass. As a guide, the pass mark is usually in the region of 70%.