After the U.S. import stop over forced-labour allegations, Giant Group has completed refunds to all affected migrant workers and fully rolled out its Zero Recruitment Fee policy.
When U.S. Customs and Border Protection (CBP) imposed a Withhold Release Order (WRO) on Giant Group’s Taiwan-made bicycles, parts and accessories on 24 September 2025, it sent a shockwave through one of the world’s most important cycling supply bases. The measure, based on suspected use of forced labor at Giant’s Taiwanese facilities, came on top of an already weak market and a double-digit revenue decline for the world’s largest bike maker.
Now Giant says it has implemented a full package of corrective measures and is pushing for a “swift” lifting of the WRO – a case that is being closely watched by OEM customers and brands across the industry.
From WRO shock to action plan
Under Section 307 of the U.S. Tariff Act, CBP can block imports if it finds reasonable evidence of forced labor in a company’s supply chain. In Giant’s case, U.S. authorities cited five indicators: abuse of vulnerability, abusive working and living conditions, debt bondage through recruitment fees, withholding of wages and excessive overtime.
Giant immediately set up an internal task force, hired a U.S. law firm and opened a formal channel with CBP. The company stresses that the WRO is limited to products made in Taiwan for export to the U.S.; other regions, including Europe and Asia, remain unaffected. To secure supply, Giant points to its factories in China, the Netherlands, Hungary and Vietnam – with its Vietnam plant already playing a key role for the U.S. market.
Zero recruitment fee – now fully implemented
At the core of the case are recruitment fees paid by migrant workers from countries such as Vietnam and Thailand. These fees, which are legal in Taiwan but banned in many other jurisdictions, have long been criticized by labor advocates because they can reach several thousand dollars and effectively tie workers to their employer through debt.
Giant introduced a Zero Recruitment Fee policy for newly hired migrant workers on 1 January 2025, taking over all recruitment, agency and government-related charges. By mid-October, the company extended the policy to all existing migrant workers and launched a phased reimbursement program. According to its latest update, the first refund phase was completed in October, and the second and final phase was finalized on 1 December. All eligible workers have now received repayments, audited by an independent third party to international standards.
Corrective Action Plan and upgraded housing
Beyond refunds, Giant is implementing a Corrective Action Plan (CAP) designed with the help of an international auditing firm. The plan includes updated corporate policies, strengthened recruitment management systems and a broad training program – both online and on site – to raise awareness of labor rights among managers and workers alike.
Housing conditions, another point of criticism in past reports, have also been addressed. Dormitory upgrades at Taiwanese manufacturing sites were completed at the end of 2024, and in October 2025 all migrant workers were moved into new facilities that, according to the company, meet international labor and human-rights standards and offer dedicated dormitory management.
New grievance channels and more transparency
Giant has also overhauled its grievance mechanisms. Internally, the company promotes its GTMCare system; externally it is encouraging use of Taiwan’s government-run 1955 migrant worker hotline. The goal, it says, is to ensure that workers can raise concerns safely and receive timely support via multiple channels. Giant has committed to continued reporting on a dedicated CBP–WRO information site and on its corporate ESG platforms.
In late October, Giant representatives met CBP officials to discuss the status of the WRO and present ongoing improvements. A third-party audit of factories and dormitories, including worker interviews and document checks, is now part of the U.S. authority’s review process.
What’s next for buyers and partners?
For brands and OEM customers meeting suppliers this show season, the Giant case is a live test of how quickly a WRO can be resolved when a company opts for cooperation, external auditing and structural change rather than confrontation. CBP will now review audit findings and Giant’s ongoing CAP before deciding whether to lift the import block.
Until then, the group is relying on its non-Taiwan production footprint to keep U.S. deliveries moving, while using the WRO as a catalyst to tighten its human-rights governance. For the wider industry, the message is clear: labor practices once treated as a domestic issue are now directly linked to market access – and will increasingly sit alongside price, product and performance in buyers’ due-diligence checklists.
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