At the end of September, the USA stopped the import of Giant brand products manufactured in Taiwan. The US Customs and Border Protection (CBP) has issued a so-called "Withhold Release Order" against bicycles, bicycle parts and accessories sold in Taiwan by Giant Manufacturing Co. Ltd. were produced. The reason given for this step is "information that suggests the use of forced labour." The move has caused great unrest in the Taiwanese bicycle industry. Agreements on labour rights had already been reached at the Taipei Cycle Show in 2024 and 2025 - but the steps taken by the Bicycling Alliance for Sustainability (BAS) were unable to prevent the import ban.
What is it about?
According to reports, workers from Thailand, Vietnam and other countries often take out loans to be placed with companies in Taiwan by labour brokers for a fee. The labour brokers later keep a large part of the wages paid, which can lead to a kind of debt bondage.
The new initiative in Taiwan
Now the Taiwan Bicycle Association (TBA) has announced a new industry initiative "calling on all members of the bicycle supply chain to actively implement due diligence in supply chain compliance, with a focus on human rights and the prevention of forced labour." According to TBA, leading brands Giant Manufacturing Co. and Merida Industry Co. have already launched their due diligence programmes and will continue to report on their progress to set an important precedent for the entire industry.
To support member companies - particularly those supplying European and US markets - the TBA will work with international auditing firms to conduct professional due diligence on an initial group of voluntary suppliers.
Checklist of the Taiwan Bicycle Association
At the same time, TBA offers a comprehensive self-assessment checklist to help suppliers conduct internal audits. The checklist is designed to ensure initial compliance with Taiwanese labour regulations, eliminate basic risks of non-compliance, such as forced labour, and help companies gradually align with international standards. The external auditors involved in the initiative will use globally recognised social responsibility frameworks as the basis for their assessments. The audits will also refer to the International Labour Organization (ILO) Guidelines and the UN Guiding Principles on Business and Human Rights (UNGPs). Participating companies that complete the process will receive official verification and supporting documentation demonstrating their commitment to ethical and sustainable business practices.
EU Supply Chain Act
With this initiative, the bicycle industry also wants to avoid problems that could arise from new EU regulations. The EU Corporate Sustainability Due Diligence Directive (CSDDD, EU Supply Chain Directive or EU Supply Chain Act) contains both human rights and environmental due diligence obligations as well as requirements for a climate plan. The directive has already been adopted - but still needs to be implemented in national laws by the individual countries.
Merida refunds agency fees
Separately from the initiative, Merida has announced that it will introduce a fee-free recruitment policy for migrant workers from 1 October. In Taiwan, labour laws allow agents to charge fees from migrant workers, but this can lead to bonded labour, which is an indicator of forced labour. Now Merida will no longer allow agents to charge fees to new migrant workers. Merida has also announced a reimbursement plan to compensate migrant workers for their previous recruitment costs. "Our goal is to complete the reimbursement by 25 October 2025," Merida explained.
Kristian Bauer
Editor
