Final answer:
A Canadian maintenance entity authorized to perform an annual inspection on U.S. registered aircraft must hold an FAA repair station certification and operate under the provisions of the U.S.-Canada Bilateral Aviation Safety Agreement (BASA), ensuring compliance with FAA maintenance standards.
Step-by-step explanation:
The question is asking about the entities authorized to perform an annual inspection on aircraft (A/C) that are registered in the United States but may be located in Canada. In the context of aviation maintenance, only certain certified entities are allowed to conduct such inspections to ensure compliance with both U.S. Federal Aviation Administration (FAA) and local aviation authorities' regulations. In Canada, the Transport Canada Civil Aviation (TCCA) authorized maintenance organizations can perform annual inspections on U.S.-registered aircraft provided they hold an FAA repair station certification under the provisions of the U.S.-Canada Bilateral Aviation Safety Agreement (BASA). These organizations must adhere to the maintenance standards prescribed by the FAA to operate legally in service to U.S.-registered aircraft.