New Details Emerge Regarding CBP’s Hold of Giant Bicycles

Initial reports regarding U.S. Customs and Border Patrol’s Withhold Release Order of Giant-made bicycles suggested that CBP had been investigating Giant for some time and had made contact with the company regarding labor violations that have been alleged. Based on Giant’s response to news reports, that’s not the case.

First, Giant had already implemented a Zero Recruitment Fee policy in January, 2025. Additionally, Giant reports that they made upgrades to employee housing that were complete in 2024.

Contrary to some reports, Giant says that they were not contacted by CBP prior to the Withhold Release Order (WRO). They did not perform an on-site investigation of Giant’s facilities at any point. Giant reports CBP did not contact the company prior to issuing the WRO.

CBP issued a statement saying, “Giant profited by imposing such abuse, resulting in goods produced below market value and undercutting American businesses by millions of dollars in unjustly earned profits.

Those are serious charges against a corporation, and yet, Ken Li, Giant Group’s spokesperson said, “As far as wwe are aware, there have not been investigations, interviews, site visits, or formal requests for information from the US authorities.”

The question becomes: On what basis is CBP leveling these accusations?

The source appears to be a report by Danish journalist Peter Bengtsen regarding forced labor in the automotive, electronics and bicycle industries. Bengtsen’s report levels accusations against a variety of companies, many of which are unlikely to be unfamiliar to U.S. consumers, but it does call out both Merida (a supplier to many U.S. brands, including Specialized) and Maxxis, the tire maker. Bengtsen’s report identifies specific issues, including debt bondage, withheld wages, abusive living conditions, intimidation and threats. The report goes on to detail how responsive Giant was to the accusations and remedies it had undertaken or committed to undertake. Those remedies, according to the report, included a cessation in withholding wages, dorm renovation and the Zero Recruitment Fee policy.

If Bengtsen’s report was the source of information on which the CBP’s WRO was based, then the reasons used to justify the WRO were largely already resolved by the time it was issued.

Giant also reports that no shipments have been seized thus far and the company plans to file a petition with CBP to withdraw the WRO.

I’ve talked to several people in the industry about their take on the situation and no one wants to speak on the record, but they all shared a concern that the government’s action was more about sowing uncertainty, intimidation and fear than actually resolving labor issues in Taiwan. The U.S. is the single largest importer of bicycles from Taiwan, and while some government officials have talked about re-shoring industry, there is simply no way to shift even 10 percent of the bicycles manufactured in Taiwan to the U.S. given current manufacturing facilities.