A petition filed Oct. 24 alleges that hard empty capsules from Brazil, China, India, and Vietnam are being sold at less than fair value in the U.S. and benefiting from countervailable subsidies. The alleged average dumping margins are 78.43 and 98.74 percent for Brazil, 136.51 and 170.91 percent for China, 57.5 and 86.34 percent for India, and 65.97 and 89.33 percent for Vietnam.
The products subject to this petition are used by the pharmaceutical and nutraceutical industries as a mechanism of delivery formulations to patients/consumers. They consist of 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.
HECs 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.
Imports of subject goods are provided for under HTSUS 9602.00.1040 or 9602.00.5010 and may also be imported under subheadings 3503.00.5510, 3923.90.0080, and 2106.90.9998.
Products that do not disintegrate/dissolve in a liquid biorelevant medium (e.g., water) under tests specified in the United States Pharmacopeia – National Formulary, or equivalent disintegration/dissolution tests, within two hours are not covered by this petition.
The Department of Commerce and the International Trade Commission will next determine whether to launch AD and CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact Sandler, Travis & Rosenberg as soon as possible.
For more information, please contact attorney Kristen Smith at (202) 730-4965.
Copyright © 2025 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.