Customs duties really affected us at first, creating uncertainty. It's important to note that the aerospace sector is currently covered by the rules of origin of the Canada-United States-Mexico Agreement, or CUSMA.
Companies have to demonstrate that aerospace parts crossing the border comply with the rules—I must reiterate this several times—before the parts can be installed on a finished aeroplane or helicopter. If they comply with the CUSMA rules of origin, they are not subject to duties.
However, this entails a lot of administrative work, especially for SMEs, who have said that these tasks account for up to 10% of productivity losses related to customs duties. As a result, customs duties are not the primary challenge as they are generally avoidable in most cases. The real obstacle is the administrative burden tied to refund claims and related tasks.
