Full Breakdown
U.S. Customs and Border Protection Issues Withhold Release Order Against Giant Manufacturing Co. Ltd.
9/25/2025, 2:37:26 AM
Overview of the Withhold Release Order
On September 24, 2025, U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) against bicycles, bicycle parts, and accessories manufactured in Taiwan by Giant Manufacturing Co. Ltd. This order was enacted due to allegations of forced labor practices at Giant's manufacturing facilities, specifically citing violations of 19 U.S.C. § 1307, which prohibits the importation of goods produced with forced labor. The WRO is the third issued by CBP in 2025 and the fourth in the current fiscal year.
Allegations of Forced Labor
CBP's investigation identified several indicators of forced labor at Giant's facilities, including abuse of vulnerability, abusive working and living conditions, debt bondage, withholding of wages, and excessive overtime. According to CBP Commissioner Rodney S. Scott, these practices allowed Giant to produce goods below market value, resulting in significant financial advantages over U.S. competitors. The International Labour Organization estimates that approximately 28 million workers globally are subjected to forced labor conditions.
Giant Manufacturing's Response
In response to the WRO, Giant Manufacturing Co. Ltd. stated its commitment to upholding human rights and labor protections. The company has implemented a Zero Recruitment Fee Policy since January 2025, ensuring that all recruitment-related fees for newly hired migrant workers are covered by the company. Additionally, Giant has upgraded employee housing and established internal supervision mechanisms and third-party audits to ensure compliance with labor standards. The company plans to file a petition with CBP to seek the revocation of the WRO, asserting that it has taken appropriate measures to address the allegations.
Implications of the Order
The WRO specifically targets products manufactured in Taiwan, meaning that Giant's operations in other countries remain unaffected. However, the order may lead to delays or inspections of shipments to the U.S. market. Giant's revenue has already been impacted, with a reported 26.7 percent decline in August 2025 compared to the previous year. The U.S. is a significant market for Taiwanese-made bicycles, with Giant being a major player alongside other brands such as Merida.
Criticism and Ongoing Investigations
Critics of Giant's labor practices have pointed to previous reports of poor working conditions and high recruitment fees. While Giant has made commitments to improve labor conditions, skepticism remains regarding the effectiveness of these measures. CBP has emphasized that importers have a responsibility to ensure ethical practices within their supply chains and will continue to investigate allegations of forced labor.
Verbatim Quotes
- “CBP has a proven track record of cracking down on companies that use forced labor to the detriment of law-abiding U.S. businesses,” — Rodney S. Scott, CBP Commissioner
- “Importers have a responsibility to do their due diligence and know their supply chains,” — Susan S. Thomas, Acting Executive Assistant Commissioner of CBP’s Office of Trade
What's Next
Giant Manufacturing is expected to provide further updates regarding its appeal against the WRO and its ongoing efforts to address labor practices. CBP will continue to monitor the situation and investigate any additional allegations of forced labor in U.S. supply chains.
