Which Canadian entity can perform an annual inspection on a U.S.-registered aircraft?

The correct answer is that neither entity listed can perform an annual inspection on a U.S.-registered aircraft.

In the context of aviation regulations, U.S.-registered aircraft are subject to the oversight of the Federal Aviation Administration (FAA). Only individuals or organizations that hold a valid FAA repair station certificate or an A&P mechanic with Inspection Authorization (IA) are authorized to perform annual inspections on these aircraft. In Canada, while an Aviation Maintenance Engineer (AME) and an Approved Maintenance Organization (AMO) have certain capabilities and regulatory frameworks, they do not have the authority to conduct annual inspections on U.S.-registered aircraft without specific FAA endorsements or agreements in place.

This regulatory distinction is crucial for maintaining compliance with U.S. aviation standards and ensuring the airworthiness of aircraft. Thus, the limitations imposed by FAA regulations on who can perform such inspections elucidate why neither the AME nor the AMO can carry out an annual inspection on U.S.-registered aircraft.