TAIPEI (Taiwan News) — Taiwan Labor Front responded to a forced labor charge by US Customs and Border Protection against Giant Manufacturing Co., Ltd., which bars the import of bicycles, bicycle parts, and accessories made in Taiwan under a Withhold Release Order.

CBP said it based the order on information that reasonably indicates forced labor, citing indicators such as abuse of vulnerability, abusive working and living conditions, debt bondage, withholding of wages, and excessive overtime. The order does not apply to Giant products made in China, Vietnam, Hungary, or the Netherlands, per CNA.

TLF said this is the first major case in which a Taiwanese company has been accused by CBP of forced labor, and called on the government to propose policies and guide companies to avoid such risks.

The group said Taiwanese companies generally lack awareness of human rights — especially regarding the internationally recognized issue of forced labor — which could lead to Taiwan products being excluded from profitable markets in Europe and the US.

In 2020, TLF said many NGOs urged the government to follow the three key objectives of the United Nations Guiding Principles on Business and Human Rights and turn them into a national action plan, but there has been no progress, with Taiwan falling behind international standards.

TLF said there has been little progress on labor issues, let alone legislation on supply chain management and due diligence. This passive attitude not only lags behind international partners, it also causes Taiwan to miss opportunities to improve corporate human rights.

According to TLF, businesses are aware of the need to align with international labor standards, though in practice little action has been taken. It called on the Ministry of Labor to address concerns about “fair recruitment” policies to reduce forced labor risks for migrant workers.

Taichung Mayor Lu Shiow-yen (盧秀燕) told local media that the bicycle industry and related upstream and downstream sectors are a major part of Taichung’s economy and have been impacted by US tariffs for some time. With this incident, the Taichung City Government will further engage in talks and communication, per CNA.

She said the bicycle industry is already struggling with tariffs and now faces customs issues. She added there is a Taiwan–US customs cooperation mechanism that can provide a channel for communication, and warned that if the government does not address the issue promptly, many in the bicycle industry worry about potential impacts on future exports.