Taipei, Taiwan/Hong Kong
—
Giant, the world’s largest bike producer, on Thursday warned of delays to shipments to the United States after American customs officers introduced a surprise ban on imports over unspecified pressured labor accusations.
US Customs and Border Protection (CBP) issued an order on Wednesday to detain Giant bikes, their components, and equipment manufactured in Taiwan following an investigation into the bike-making powerhouse that discovered indicators of pressured labor.
Giant instructed NCS that it might file a petition to hunt the revocation of the order, including that it had not been beforehand conscious of any US probe into its enterprise. It mentioned it might cooperate with CBP.
The American border company mentioned its probe recognized abuse of vulnerability, abusive working and dwelling circumstances, debt bondage, withholding of wages, and extreme additional time. It didn’t present additional particulars or proof of Giant’s alleged pressured labor observe.
“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,” the company mentioned in a Wednesday statement.
Giant mentioned that it had not been approached for remark as half of the CBP investigation.
“As far as we are aware, there have not been investigations, interviews, site visits, or formal requests for information from the US authorities,” Ken Li, Giant Group’s spokesperson, instructed NCS. “At this stage, we have not yet had direct engagement with them.”
“Giant Group is firmly committed to upholding human rights and labor protections,” it mentioned in a statement.
It added that it has established inside mechanisms and third-party audits to make sure compliance with worldwide requirements.
The order got here as bilateral relations between Taiwan and the United States are examined by President Donald Trump’s international tariff offensive, with tariff negotiations ongoing.
When requested by NCS if Giant believed the CBP order was associated to ongoing tariff negotiations, the spokesman mentioned the corporate “made no assumptions.”
Giant operates manufacturing amenities in Taiwan, China, Vietnam, Netherlands and Hungary. But solely shipments made in Taiwan could be affected, Giant mentioned.
CBP has about 50 energetic orders in opposition to merchandise from firms in China, Japan and South Korea as a result of of pressured labor allegations.
Giant mentioned delays in some shipments to the US have been anticipated within the quick time period whereas it activated contingency measures to attenuate the impression.
Founded in 1972, Giant has turn out to be the world’s largest producer of bicycles, with greater than $2.3 billion in gross sales final yr, the corporate web site mentioned. It at present employs greater than 13,000 folks globally, and it bought almost 4 million bikes bought worldwide final yr, in line with the corporate’s annual report.
Taiwan’s Ministry of Economic Affairs said on Thursday it might coordinate with the Labor Ministry to help Giant in swiftly addressing the difficulty.
Taiwan is one of the world’s most advances economies, identified for its dominance in high-tech merchandise and high quality manufacturing. But sure sectors have been more and more reliant on migrant staff and in some industries – like fishing – there have been past reports of labor abuses.