Hard Empty Capsules: Commerce Issues Final AD Determinations
The Commerce Department made final affirmative antidumping duty determinations that imports of hard empty capsules from Brazil (A-351-864), China (A-570-184), India (A-533-934) and Vietnam (A-552-847) are being sold in the U.S. at less than fair value. Suspension of liquidation and cash deposit requirements will continue for entries on or after May 29, the date that the preliminary determinations were published in the Federal Register. Cash deposit rates set in these final determinations take effect Dec. 29.
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The next step is for the International Trade Commission to make its final injury determinations, currently due Feb. 2, according to the ITC's website. If the ITC finds injury, Commerce will issue AD orders and duties will be made permanent. If the ITC finds no injury, the investigations will be terminated and all cash deposits will be refunded.
In its final determination on hard empty capsules from China, Commerce found no dumping by Shanxi JC Biological Technology Co., Ltd., calculating a zero rate for the company. As a result, hard empty capsules both produced and exported by Shanxi JC will be exempt from any AD order issued in connection with this investigation.
Commerce also issued final determinations in its concurrent countervailing duty investigations on hard empty capsules from Brazil, China, India and Vietnam, setting CVD rates at 10.67% for all Brazilian exporters, 7.06% for all Indian exporters, 2.45% for all Vietnamese exporters, and ranging from 3.14% to 8.81% for Chinese exporters (see 2512230052).
Scope Amended to Clarify Disintegration Requirement
Commerce is amending the scope of its AD/CVD investigations on hard empty capsules from Brazil, China, India and Vietnam to clarify that the investigations cover capsules that disintegrate in "water, simulated intestinal fluid, simulated gastric fluid, or other similar water-based (i.e., aqueous) fluids" within two hours. Previously, the scope had only said the capsules had to disintegrate in water within two hours.
AD Suspension of Liquidation and Cash Deposit Requirements
Commerce will instruct CBP to suspend liquidation for AD purposes for all entries of subject merchandise that are entered, or withdrawn from warehouse, on or after the dates listed in the tables below, and require cash deposits at the following rates:
Brazil
| Company | AD Rate | Adjusted* |
|---|---|---|
| ACG do Brasil S.A | 77.63% | 77.63% |
| All Others | 77.63% | 77.63% |
China
| Producer | Exporter | AD Rate | Adjusted* |
|---|---|---|---|
| Shandong Healsee Capsule Ltd. | Shandong Healsee Capsule Ltd. | 18.71% | 18.71% |
| Shanxi JC Biological Technology Co., Ltd | Shanxi JC Biological Technology Co., Ltd | zero | N/A |
| Guizhou Guang De Li Pharmaceuticals Co.,Ltd. | Guizhou Guang De Li PharmaceuticalsCo., Ltd. | 18.71% | 18.71% |
| Hebei Kangxin Plant Capsule Co., Ltd. | Hebei Kangxin Plant Capsule Co., Ltd. | 18.71% | 18.71% |
| Hubei Kornnac Pharmaceutical Co.,Ltd.13 | Hubei Kornnac Pharmaceutical Co.,Ltd. | 18.71% | 18.71% |
| Jiangsu Lefan Capsule Co., Ltd | Jiangsu Lefan Capsule Co., Ltd | 18.71% | 18.71% |
| Jiujiang Angtai Capsule Co., Ltd. | Jiujiang Angtai Capsule Co., Ltd. | 18.71% | 18.71% |
| Qingdao Yiqing Biotechnology Co.,Ltd. | Qingdao Yiqing Biotechnology Co.,Ltd. | 18.71% | 18.71% |
| Shaanxi Genex Bio- Tech Co., Ltd. | Shaanxi Genex Bio- Tech Co., Ltd. | 18.71% | 18.71% |
| Shanghai Guang De Li Capsule Co., Ltd. | Shanghai Guang De Li Capsule Co., Ltd. | 18.71% | 18.71% |
| Shanxi Guangsheng Medicinal Capsule Co., Ltd. A.K.A.Shanxi GuangshengCapsule Co., Ltd. | Shanxi Guangsheng Medicinal Capsule Co., Ltd. A.K.A.Shanxi GuangshengCapsule Co., Ltd. | 18.71% | 18.71% |
| Shaoxing Kangke Capsule Co., Ltd | Shaoxing Kangke Capsule Co., Ltd | 18.71% | 18.71% |
| Shaoxing Renhe Capsule Co., Ltd. | Shaoxing Renhe Capsule Co., Ltd. | 18.71% | 18.71% |
| Xinchang County Hexin Capsule Co.,Ltd. | Xinchang County Hexin Capsule Co.,Ltd. | 18.71% | 18.71% |
| Xinchang County No.6 Capsule Factory | Xinchang Paulo Import And ExportCo., Ltd. | 18.71% | 18.71% |
| Shaoxing Kangke Capsule Co., Ltd. | Xinchang Paulo Import And ExportCo., Ltd. | 18.71% | 18.71% |
| Zhejiang Huaguang Capsule Co., Ltd. | Xinchang Paulo Import And ExportCo., Ltd. | 18.71% | 18.71% |
| Shanxi Guangsheng Capsule Co., Ltd. | Xinchang Paulo Import And ExportCo., Ltd. | 18.71% | 18.71% |
| Zhejiang Pujiang Enerkang Capsule Co.,Ltd. | Xinchang Paulo Import And ExportCo., Ltd. | 18.71% | 18.71% |
| Yantai Oriental Pharmacap Co., Ltd. | Yantai Oriental Pharmacap Co., Ltd. | 18.71% | 18.71% |
| Ningbo Capsulcn Capsule Co., Ltd. | Zhejiang Capsulcn Machinery Co., Ltd. | 18.71% | 18.71% |
| Shaoxing Zhongya Capsules Industry Co.,Ltd. | Zhejiang Capsulcn Machinery Co., Ltd. | 18.71% | 18.71% |
| Shandong Healsee Capsule Ltd. | Zhejiang Capsulcn Machinery Co., Ltd. | 18.71% | 18.71% |
| Zhejiang GuangjuyuanBiotechnology Co., Ltd. | Zhejiang Capsulcn Machinery Co., Ltd. | 18.71% | 18.71% |
| Zhejiang Huaguang Capsule Co., Ltd. | Zhejiang Capsulcn Machinery Co., Ltd. | 18.71% | 18.71% |
| Zhejiang Huaguang Capsule Co., Ltd. | Zhejiang Huaguang Capsule Co., Ltd. | 18.71% | 18.71% |
| Zhejiang Huili Capsules Co., Ltd. | Zhejiang Huili Capsules Co., Ltd. | 18.71% | 18.71% |
| Zhejiang Lujian Capsule Co., Ltd. | Zhejiang Lujian Capsule Co., Ltd. | 18.71% | 18.71% |
| China-wide Entity | 18.71% | 18.71% |
India
| Company | AD Rate | Adjusted* |
|---|---|---|
| ACG Associated Capsules Private Limited; ACG Universal Capsules Private Limited; and Custom Capsules Private Limited | 26.69% | 19.71% |
| HealthCaps India Limited | 10.66% | 3.68% |
| All Others | 18.68% | 11.7% |
Vietnam
| Exporter | Producer | AD Rate | Adjusted* |
|---|---|---|---|
| Suheung Vietnam Co., Ltd | Suheung Vietnam Co., Ltd | 47.12% | 46.24% |
| All Others | 47.12% | 46.24% |
*As adjusted for export subsidies found in the concurrent CVD investigation. This adjustment is not in effect, and will only be the cash deposit rate once CVD collection resumes upon publication of the ITC's final injury determination.
(The period of investigation is 04/01/24 - 09/30/24 for China and Vietnam, and 10/01/23 - 09/30/24 for Brazil and India. See Commerce's notice for more information, including the scope, suspension of liquidation, etc. See 2505300031 for a summary of the preliminary results of this AD investigation.)