On October 24, 2024, a petition was filed for the imposition of antidumping (AD) and countervailing (CVD) duties on the imports of hard empty capsules from Brazil, China, India, and Vietnam. The petition alleges dumping margins of 136.51% to 170.91% for China, 57.50% to 86.34% for India, 78.43% to 98.74% for Brazil, and 65.97% to 89.33% for Vietnam. The petition identifies certain foreign producers/exporters and U.S. importers of the investigated product.
The merchandise subject to this Petition is hard empty capsules, or HECs. HECs are two-piece unfilled cylindrical shells composed primarily (at least 80 percent by weight, as discussed below) of polymer material that is non-toxic, biodegradable, biocompatible, and water soluble. Polymer material used in HECs may be gelatin produced through the hydrolysis of animal collagen, such as animal skins, hides, and/or bones. Cows and pigs are the most common sources of collagen for gelatin-based HECs, but fish-based gelatin is also sometimes used. Polymer material used in HECs may also be plant-based, such as HPMC and pullulan. HPMC is “a semisynthetic, inert, viscoelastic cellulose obtained directly from strains of fibrous plant material and partially etherified with methyl groups.” HPMC also contains “a small degree of hydroxypropyl substitution of methyl and hydroxypropyl celluloses produced from wood pulp.” Pullulan is a natural polysaccharide (polycarbohydrate) that is “commercially produced extracellularly by the non-pathogenic and non-toxic strain” of the fungus “Aureobasidium pullulans, utilizing starch and other food grade components.”
The projected date of International Trade Commission’s Preliminary Conference is November 14, 2024. The earliest theoretical date for retroactive suspension of liquidation for AD is January 2, 2025; CVD is November 13, 2024.
Please feel free to contact one of our attorneys for further information, including a complete scope description, complete projected schedule for the AD and CVD investigations; the volume and value of imports; and list of identified foreign exporters and U.S. importers.