Hard Empty Capsules: Commerce Issues Final CVD Determinations
The Commerce Department issued its final determinations in its countervailing duty investigations on hard empty capsules from Brazil (C-351-865), China (C-570-185), India (C-533-935) and Vietnam (C-552-848), after finding countervailable subsidization of producers and exporters in the four countries in the preliminary determinations of its CVD investigations. Suspension of liquidation is currently not in effect for entries on or after July 29, 2025, and Commerce will require cash deposits of estimated CVD on future entries only if it issues a CVD order.
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Before Commerce issues a CVD order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Feb. 2, according to the ITC's website. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
Commerce also issued final determinations in its concurrent AD investigations on hard empty capsules from Brazil, China, India and Vietnam, setting AD rates at 77.63% for all Brazilian exporters and 47.12% for all Vietnamese exporters, and setting rates ranging from zero to 18.71% for Chinese exporters and 10.66% to 26.69% for Indian exporters (see 2512230050).
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.
CV Susp/Cash Deposit Through July 28
For now, Commerce has instructed CBP to continue the suspension of liquidation of subject merchandise entered March 31, 2025, through July 28, 2025.
CVD Liq Reinstated and No CVD Cash Deposit as of July 29
Commerce previously instructed CBP to discontinue the suspension of liquidation for CVD purposes and the collection of CVD cash deposits for subject merchandise on or after July 29, the expiration date of the 120-day “provisional measures” period during which Commerce can suspend liquidation without a CVD order in place.
Suspension of liquidation currently remains in effect for AD purposes, except for Shanxi JC, which got a zero rate in the AD final determination and is no longer subject to AD.
CV Liq to Be Suspended Again and CVD Cash Deposit Required If Order Issued
If the ITC issues a final affirmative injury determination, Commerce will issue a CVD order, reinstate the CVD suspension of liquidation for all exporters and require a cash deposit of estimated CVD for entries of subject merchandise at the revised CVD rates listed below.
Brazil
| Company | CVD Rate |
|---|---|
| ACG do Brasil S.A | 10.67% |
| All Others | 10.67% |
China
| Company | CVD Rate |
|---|---|
| Jiangsu Lefan Capsule Co., Ltd | 3.14% |
| Shanxi JC Biological Technology Co., Ltd | 8.81% |
| All Others | 6.9% |
India
| Company | CVD Rate |
|---|---|
| ACG Associated Capsules Private Limited; ACG Pam Pharma Technologies Private Limited; ACG Universal Capsules Private Limited | 7.06% |
| All Others | 7.06% |
Vietnam
| Company | CVD Rate |
|---|---|
| Suheung Vietnam Co., Ltd | 2.45% |
| All Others | 2.45% |
(The period of investigation for Brazil, China and Vietnam is 01/01/23 - 12/31/23, and for India it's 04/01/23 - 03/31/24. See Commerce's notice for more information, including the scope, suspension of liquidation, etc. See 2503310036 for a summary of the preliminary determinations in these investigations.)