New U.S. Customs Benefits for e-Bike Manufacturer ProdecoTech - Global Trade Magazine
  May 13th, 2015 | Written by

New U.S. Customs Benefits for e-Bike Manufacturer ProdecoTech

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  • E-Bike Manufacturer, ProdecoTech granted federal approval to operate as non-contiguous state under FTZ No. 25.
  • Eliminating U.S. Customs duties on foreign components saves this company approx. 4 percent in finished product cost.
  • FTZ No. 25 provides savings and incentives for warehousing, distribution, manufacturing and more.

ProdecoTech, an electronic bicycle (e-bike) manufacturer in Oakland Park, Fla., can now enjoy the Customs benefits as part of Port Everglades’ Foreign-Trade Zone (FTZ) No. 25. Acting as a non-contiguous state within Port Everglades, FTZ No. 25 allows the company to eliminate U.S. Customs duties on foreign components, saving approximately 4 percent of the cost of its finished products.

Parts for ProdecoTech’s e-bikes are made in China, Japan, Taiwan, Korea, Vietnam and the United States. Of the company’s 60,000-square-foot facility, about half of it is an FTZ-activated warehouse and production facility.

“Most of our e-bikes, 95 percent, are customized with components that are imported from the Far East and assembled here in the United States along with components that are manufactured domestically,” says ProdecoTech’s Daniel Del Aguila, who owns the company with partner Robert Provost.  “By applying for and obtaining FTZ status for the production and warehouse part of our operations, we are able to save on Customs duties on the foreign parts and improve our bottom line.”

U.S. manufacturers and distributors within FTZ No. 25—which import and export everything from auto parts to cosmetics—are incentivized by substantial savings on services that include warehousing, distribution and some manufacturing needs.


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