Cargo Systems Messaging Service

CSMS # 63125955 - Initiation of Antidumping and Countervailing Duty Investigations: Hard Empty Capsules from Brazil, the People’s Republic of China (China), India, and the Socialist Republic of Vietnam (Vietnam)

On November 13, 2024, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “Hard Empty Capsules from Brazil, China, India, and Vietnam” (Initiation Notices). These investigations have been assigned the following case numbers: A-351-864 and C-351-865 (Brazil), A-570-184 and C-570-185 (China), A-533-934 and C-533-935 (India), A-552-847 and C-552-848 (Vietnam).

The Scope of Merchandise covered by these investigations reads as follows:

The merchandise subject to the scope of these investigations is hard empty capsules, which are comprised of two prefabricated, hollowed cylindrical sections (cap and body). The cap and body pieces each have one closed and rounded end and one open end and are constructed with different or equal diameters at their open ends.

Hard empty capsules are unfilled cylindrical shells composed of at least 80 percent by weight of a water-soluble polymer that is considered non-toxic and appropriate for human or animal consumption by the United States Pharmacopeia – National Formulary (USP-NF), Food Chemical Codex (FCC), or equivalent standards. The most common polymer materials in hard empty capsules are gelatin derived from animal collagen (including, but not limited to, pig, cow, or fish collagen), hydroxypropyl methylcellulose (HPMC), and pullulan.

Hard empty capsules may also contain water and additives, such as opacifiers, colorants, processing aids, controlled release agents, plasticizers, and preservatives. Hard empty capsules may also be imprinted or otherwise decorated with markings.

Hard empty capsules are covered by the scope of these investigations regardless of polymer material, additives, transparency, opacity, color, imprinting, or other markings.

Hard empty capsules are also covered by the scope of these investigations regardless of their size, weight, length, diameter, thickness, and filling capacity.

Cap and body pieces of hard empty capsules are covered by the scope of these investigations regardless of whether they are imported together or separately, and regardless of whether they are imported in attached or detached form.

Hard empty capsules covered by the scope of these investigations are those that disintegrate in water within 2 hours under tests specified in Chapter 701 of the USP-NF, or equivalent disintegration tests.

Hard empty capsules are classifiable under subheadings 9602.00.1040 and 9602.00.5010 of the Harmonized Tariff Schedule of the United States (HTSUS). In addition, hard empty capsules may be imported under HTSUS subheading 1905.90.9090; gelatin hard empty capsules may be imported under HTSUS subheading 3503.00.5510; HPMC hard empty capsules may be imported under HTSUS subheading 3923.90.0080; and pullulan hard empty capsules may be imported under HTSUS subheading 2106.90.9998. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by these investigations is dispositive.

Parties may submit comments on the scope of the investigations. Please be sure to comply with all requirements pertaining submitting comments as described in the forthcoming Initiation Notices. Upon their publication in the Federal Register, the Initiation Notices may be found at www.federalregister.gov via the search bar using the case numbers assigned to these investigations.

Importers should be aware that entries of subject merchandise made after the initiation of an investigation may retroactively be subject to antidumping and/or countervailing duties.

For questions about CBP’s AD/CVD enforcement, see Priority Trade Issue: Antidumping and Countervailing Duties | U.S. Customs and Border Protection (cbp.gov).