Which statement regarding custom duties under the Autopac Program is correct?

The statement indicating that the insurer must pay the duty on all repairs made while out of Canada is correct because, under the Autopac Program, any necessary repairs conducted outside of Canada may incur customs duties. When vehicle repairs are performed in another country, such as the United States, these duties are typically not covered unless specified by the insurer’s policy terms. As a result, it is the insurer's responsibility to pay these duties to ensure the repairs are compliant with import regulations when the vehicle returns to Canada.

The context of the Autopac Program also clarifies that all repairs are not necessarily required to be completed within Canada. This allows for certain repairs to be done elsewhere, but it also opens the possibility for customs duties to arise. Thus, the emphasis on the insurer’s role in paying these duties aligns with the policies governing custom duties under the Autopac Program, confirming that the chosen answer accurately reflects the obligations of the insurer in these scenarios.