New AD/CVD Petitions: Hard Empty Capsules from Brazil, China, India, and Vietnam

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Hard Empty Capsules from Brazil, China, India, and Vietnam

On October 24, 2024, new antidumping (AD) and countervailing duty (CVD) petitions were filed against imports of Hard Empty Capsules from Brazil, China, India and Vietnam. Hard Empty Capsules (HEC) are unfilled cylindrical shells (usually gelatin based) that are used to hold pharmaceutical or nutraceutical products.

The petition was filed by Lonza Greenwood LLC, which is the U.S. affiliate of the Lonza Group which is headquartered in Switzerland. The Lonza Group has HEC production facilities in Belgium, China, France, India, Indonesia, Mexico, and Japan, in addition to the United States.

These AD/CVD investigations will be conducted by two federal agencies. The International Trade Commission (“ITC”) will investigate whether the subject imports have materially retarded the establishment of the domestic industry. The U.S. Department of Commerce (“DOC”) will investigate whether the subject imports are being sold to the United States at less than fair value (“dumping”) or benefit from unfair government subsidies. Both agencies have to make affirmative findings of material retardation (ITC) or of dumping or subsidies (DOC) in order for AD/CVD duties to be imposed on the subject imports.

Scope

The merchandise subject to the scope of this investigations is hard empty capsules (HECs), which are unfilled cylindrical shells composed of at least 80 percent by weight of a non-toxic, biodegradable, biocompatible, and water soluble polymer, and may also contain water, additives, opacifiers, colorants, and processing aids. HECs may also be imprinted or otherwise decorated with markings.

See here for a full description of the proposed scope definition

Alleged AD/CVD Margins

Petitioner calculated the following estimated dumping margins

Brazil: 78.43% – 98.74%

China: 136.51% – 170.91%

India: 57.50% – 86.34%

Vietnam: 65.97% – 89.33%

Petitioner did not provide any specific subsidy margin calculations.

Named Exporters/ Producers

Petitioner included a list of companies that it believes are producers and exporters of the subject merchandise. See attached list of HEC exporters here.