TAIPEI (Taiwan News) — Giant Manufacturing Co. Ltd. has responded to accusations of forced labor from the US Customs and Border Protection agency after a shipment was seized.

Giant disputes the allegations and says US Customs never inspected their factory, in Taichung. The city’s Mayor Lu Shiow-yen (盧秀燕) addressed the issue at the City Council on Friday, and added labor department records indicate that Giant is in compliance with the law, reported UDN.

Lu said the city has dispatched a team of inspectors to consult with senior management at Giant. The mayor said she was making inquiries to clarify details of the seizure.

Lu emphasized the need to resolve the matter as quickly as possible. She hoped that it was an isolated incident and does not reflect diverging labor standards between Taiwan and the US.

Giant expressed concern that if the matter is not resolved quickly, it may cause a ripple effect. This could threaten other Taiwanese  manufactures and lead to restricted market access in other regions.

The labor ministry is also looking into the matter, per reports. 

There is speculation that an investigative report by the French newspaper Le Monde in February, and a 2024 report by the the Business and Human Rights Resource Centre may have influenced the US Customs’ actions. The reports outline instances of foreign laborers forced to pay excessive recruitment fees to brokerage firms to secure employment with Giant. 

According to reports from Bicycle Retailer and Industry News, Giant addressed the problems in its labor recruitment process and publicized efforts to improve conditions for workers in its annual 2024 business report. In a petition to reverse the US Customs order, Giant said the issues raised were resolved as of Jan. 1.