Notice2024-27008

Hard Empty Capsules From Brazil, the People's Republic of China, India, and the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
November 20, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

Full Text

<html>
<head>
<title>Federal Register, Volume 89 Issue 224 (Wednesday, November 20, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Notices]
[Pages 91680-91684]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-27008]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-865, C-570-185, C-533-935, C-552-848]


Hard Empty Capsules From Brazil, the People's Republic of China, 
India, and the Socialist Republic of Vietnam: Initiation of 
Countervailing Duty Investigations

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.


DATES: Applicable November 13, 2024.

FOR FURTHER INFORMATION CONTACT: Seth Brown at (202) 482-0029 (Brazil), 
Laura Delgado at (202) 482-1468 and John Conniff at (202) 482-1009 (the 
People's Republic of China (China)), Gorden Struck at (202) 482-8151 
(India), and Jonathan Schueler at (202) 482-9175 (the Socialist 
Republic of Vietnam (Vietnam)), AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On October 24, 2024, the U.S. Department of Commerce (Commerce) 
received countervailing duty (CVD) petitions concerning imports of hard 
empty capsules from Brazil, China, India, and Vietnam filed in proper 
form on behalf of Lonza Greenwood LLC (the petitioner), a U.S. producer 
of hard empty capsules.\1\ The CVD Petitions were accompanied by 
antidumping duty (AD) petitions concerning imports of hard empty 
capsules from Brazil, China, India, and Vietnam.\2\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated October 24, 2024 
(Petitions).
    \2\ Id.
---------------------------------------------------------------------------

    Between October 28 and November 5, 2024, Commerce requested 
supplemental information pertaining to certain aspects of the 
Petitions.\3\ Between October 30 and November 6, 2024, the petitioner 
filed timely responses to these requests for additional information.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Supplemental Questions,'' dated 
October 28, 2024, see also Country-Specific CVD Supplemental 
Questionnaires: Brazil Supplemental, China Supplemental, India 
Supplemental, and Vietnam Supplemental, dated October 28, 29, and 
30, 2024; and Memorandum, ``Phone Call,'' dated November 5, 2024 
(November 5, 2024, Memorandum).
    \4\ See Petitioner's Letters, ``Petitioner's Response to the 
Department's General Issues Questionnaire,'' dated October 30, 2024 
(General Issues Supplement); see also Country-Specific CVD 
Supplemental Responses: Brazil CVD Supplement, China CVD Supplement, 
India CVD Supplement, and Vietnam CVD Supplement, dated October 30, 
2024, October 31, 2024, November 1, 2024, and November 4, 2024; and 
Petitioner's Letter, ``Petitioner's Response to the Department's 
General Issues Scope Questionnaire,'' dated November 6, 2024 (Scope 
Supplement).
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of Brazil 
(GOB), Government of China (GOC), the Government of India (GOI), and 
the Government of Vietnam (GOV) (collectively, Governments) are 
providing countervailable subsidies, within the meaning of sections 701 
and 771(5) of the Act, to producers of hard empty capsules from Brazil, 
China, India, and Vietnam and that such imports are materially 
injuring, or threatening material injury to, the domestic industry 
producing hard empty capsules in the United States. Consistent with 
section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged 
programs on which we are initiating CVD investigations, the Petitions 
were accompanied by information reasonably available to the petitioner 
supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry because the petitioner is an interested party, as 
defined in section 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested CVD investigations.\5\
---------------------------------------------------------------------------

    \5\ See section on ``Determination of Industry Support for the 
Petitions,'' infra.
---------------------------------------------------------------------------

Periods of Investigation

    Because the Petitions were filed on October 24, 2024, the periods 
of investigation for the Brazil, China, India, and Vietnam CVD 
investigations are January 1, 2023, through December 31, 2023.\6\
---------------------------------------------------------------------------

    \6\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigations

    The products covered by these investigations are hard empty 
capsules from Brazil, China, India, and Vietnam. For a full description 
of the scope of these investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    On November 5, 2024, Commerce requested information and 
clarification from the petitioner regarding the proposed scope to 
ensure that the scope language in the Petitions is an accurate 
reflection of the products for which the domestic industry is seeking 
relief.\7\ On November 6, 2024, the petitioner provided clarifications 
and revised the scope.\8\ The description of merchandise covered by 
these investigations, as described in the appendix to this notice, 
reflects these clarifications.
---------------------------------------------------------------------------

    \7\ See November 5, 2024, Memorandum.
    \8\ See Scope Supplement at 1-8 and Exhibit I-92.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\9\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information, all such 
factual information should be limited to public information.\10\ To 
facilitate preparation of its questionnaires, Commerce requests that 
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on December 
3, 2024, which is 20 calendar days from the signature date of this 
notice. Any rebuttal comments, which may include

[[Page 91681]]

factual information, must be filed by 5:00 p.m. ET on December 13, 
2024, which is 10 calendar days from the initial comment deadline.
---------------------------------------------------------------------------

    \9\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
---------------------------------------------------------------------------

    Commerce requests that any factual information that parties 
consider relevant to the scope of the investigations be submitted 
during that time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party must contact Commerce and 
request permission to submit the additional information. All scope 
comments must be filed simultaneously on the records of the concurrent 
AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\11\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a handbook 
can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
---------------------------------------------------------------------------

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the Governments of the receipt of the Petitions and provided 
an opportunity for consultations with respect to the Petitions.\12\ 
Commerce held consultations with the GOV on November 7, 2024,\13\ the 
GOB on November 12, 2024,\14\ and the GOI on November 13, 2024.\15\ The 
GOC did not request consultations.\16\
---------------------------------------------------------------------------

    \12\ See Commerce's Letters, ``Invitation for Consultation to 
Discuss the Countervailing Duty Petition,'' dated October 25, 2024.
    \13\ See Memorandum, ``Consultations with the Government of the 
Socialist Republic of Vietnam,'' dated November 7, 2024; see also 
GOV's Letter, ``Comments on Countervailing Duty Petition,'' dated 
November 5, 2024.
    \14\ See Memorandum, ``Consultations with the Government of 
Brazil,'' dated November 13, 2024.
    \15\ See Memorandum, ``Consultations with the Government of 
India,'' dated November 13, 2024.
    \16\ The GOC submitted comments on the CVD petition from China. 
See GOC's Letter, ``Comments on Countervailing Duty Petition,'' 
dated November 8, 2024.
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC apply the same statutory definition regarding the domestic like 
product,\17\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\18\
---------------------------------------------------------------------------

    \17\ See section 771(10) of the Act.
    \18\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United 
States, 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\19\ Based on our analysis of the information 
submitted on the record, we have determined that hard empty capsules, 
as defined in the scope, constitute a single domestic like product, and 
we have analyzed industry support in terms of that domestic like 
product.\20\
---------------------------------------------------------------------------

    \19\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Checklists, ``Countervailing Duty Investigation Initiation 
Checklists: Hard Empty Capsules from Brazil, the People's Republic 
of China, India, and the Socialist Republic of Vietnam,'' dated 
concurrently with, and hereby adopted by, this notice (Country-
Specific CVD Initiation Checklists), at Attachment II, Analysis of 
Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Hard Empty Capsules from Brazil, the People's 
Republic of China, India, and the Socialist Republic of Vietnam 
(Attachment II). These checklists are on file electronically via 
ACCESS.
    \20\ See Attachment II of the Country-Specific CVD Initiation 
Checklists.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of the domestic like product in 2023 and compared this 
to the estimated total 2023 production of the domestic like product for 
the entire industry.\21\ We relied on data provided by the petitioner 
for purposes of measuring industry support.\22\
---------------------------------------------------------------------------

    \21\ Id.
    \22\ For further discussion, see Attachment II of the Country-
Specific CVD Initiation Checklists.
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, the General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petitions.\23\ First, the Petitions established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\24\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act

[[Page 91682]]

because the domestic producers (or workers) who support the Petitions 
account for at least 25 percent of the total production of the domestic 
like product.\25\ Finally, the domestic producers (or workers) have met 
the statutory criteria for industry support under section 
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) 
who support the Petitions account for more than 50 percent of the 
production of the domestic like product produced by that portion of the 
industry expressing support for, or opposition to, the Petitions.\26\ 
Accordingly, Commerce determines that the Petitions were filed on 
behalf of the domestic industry within the meaning of section 702(b)(1) 
of the Act.\27\
---------------------------------------------------------------------------

    \23\ For further discussion, see Attachment II of the Country-
Specific CVD Initiation Checklists.
    \24\ Id.; see also section 702(c)(4)(D) of the Act.
    \25\ See Attachment II of the Country-Specific CVD Initiation 
Checklists.
    \26\ Id.
    \27\ Id.
---------------------------------------------------------------------------

Injury Test

    Because Brazil, China, India, and Vietnam are ``Subsidies Agreement 
Countries'' within the meaning of section 701(b) of the Act, section 
701(a)(2) of the Act applies to these investigations. Accordingly, the 
ITC must determine whether imports of the subject merchandise from 
Brazil, China, India, and/or Vietnam materially injure, or threaten 
material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefiting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports from China, India, and Vietnam exceed the 
negligibility threshold provided for under section 771(24)(A) of the 
Act.\28\ With respect to Brazil, while the allegedly subsidized imports 
do not exceed the statutory requirements for negligibility,\29\ the 
petitioner alleges and provides supporting evidence that: (1) there is 
a reasonable indication that the data obtained in the ITC's 
investigation will establish that imports exceed the negligibility 
threshold; \30\ and (2) there is the potential that imports from Brazil 
will imminently exceed the negligibility threshold and, therefore, are 
not negligible for purposes of a threat determination.\31\ The 
petitioner's arguments regarding the limitations of publicly available 
import data and the collection of scope-specific import data in the 
ITC's investigation are consistent with the SAA. Furthermore, the 
petitioner's arguments regarding the potential for imports from Brazil 
to imminently exceed the negligibility threshold are consistent with 
the statutory criteria for ``negligibility in threat analysis'' under 
section 771(24)(A)(iv) of the Act, which provides that imports shall 
not be treated as negligible if there is a potential that subject 
imports from a country will imminently exceed the statutory 
requirements for negligibility.
---------------------------------------------------------------------------

    \28\ For further information regarding negligibility and the 
injury allegation, see Country-Specific CVD Initiation Checklists at 
Attachment III, Analysis of Allegations and Evidence of Material 
Injury and Causation for the Antidumping and Countervailing Duty 
Petitions Covering Hard Empty Capsules from Brazil, the People's 
Republic of China, India, and the Socialist Republic of Vietnam 
(Attachment III).
    \29\ Id.
    \30\ Id.; see also Statement of Administrative Action 
Accompanying the Uruguay Round Agreements Act, H.R. Doc 103-316, 
Vol. 1 (1994) (SAA).
    \31\ See Attachment III of the Country-Specific CVD Initiation 
Checklists; see also section 771(24)(A)(iv) of the Act.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by the significant and increasing volume of subject 
imports; reduced market share; underselling and price depression and/or 
suppression; lost sales and revenues; and decline in the domestic 
industry's production, U.S. shipments, net sales, and financial 
performance.\32\ We assessed the allegations and supporting evidence 
regarding material injury, threat of material injury, causation, 
cumulation, as well as negligibility, and we have determined that these 
allegations are properly supported by adequate evidence and meet the 
statutory requirements for initiation.\33\
---------------------------------------------------------------------------

    \32\ See Attachment III of the Country-Specific CVD Initiation 
Checklists.
    \33\ Id.
---------------------------------------------------------------------------

Initiation of CVD Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating CVD investigations to determine 
whether imports of hard empty capsules from Brazil, China, India, and 
Vietnam benefit from countervailable subsidies conferred by the GOB, 
GOC, GOI, and GOV, respectively. In accordance with section 703(b)(1) 
of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determinations no later than 65 days after the date of 
these initiations.

Brazil

    Based on our review of the Petitions, we find that there is 
sufficient information to initiate a CVD investigation on 18 of the 18 
programs alleged by the petitioner. For a full discussion of the basis 
for our decision to initiate on each program, see the Brazil CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.

China

    Based on our review of the Petitions, we find that there is 
sufficient information to initiate a CVD investigation on 18 of the 19 
programs alleged by the petitioner. For a full discussion of the basis 
for our decision to initiate on each program, see the China CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.

India

    Based on our review of the Petitions, we find that there is 
sufficient information to initiate a CVD investigation on 22 of the 23 
programs alleged by the petitioner. For a full discussion of the basis 
for our decision to initiate on each program, see the India CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.

Vietnam

    Based on our review of the Petitions, we find that there is 
sufficient information to initiate a CVD investigation on 26 of the 26 
programs alleged by the petitioner. For a full discussion of the basis 
for our decision to initiate on each program, see the Vietnam CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.

Respondent Selection

Brazil and Vietnam

    In the Petitions, the petitioner identified two companies in Brazil 
(i.e., ACG do Brasil S.A. and Genix Industria Farmaceutica LTDA 
(Qualicaps Brazil)) and two companies in Vietnam (i.e., Cuu Long 
Pharmaceutical Joint Stock Company (DCL) and Suheung Vietnam Co., Ltd.) 
as producers/exporters of hard empty capsules and provided independent 
third-party information as support.\34\ We currently know of no

[[Page 91683]]

additional producers/exporters of hard empty capsules from Brazil and 
Vietnam. Accordingly, Commerce intends to individually examine all 
known producers/exporters in the investigations for Brazil and Vietnam 
(i.e., the companies cited above). We invite interested parties to 
comment on this issue. Such comments may include factual information 
within the meaning of 19 CFR 351.102(b)(21). Parties wishing to comment 
must do so within three business days of the publication of this notice 
in the Federal Register. Comments must be filed electronically using 
ACCESS. An electronically filed document must be received successfully 
in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. 
Because we intend to examine all known producers/exporters in Brazil 
and Vietnam, if no comments are received, or if comments received 
further support the existence of only these producers/exporters in 
Brazil and Vietnam, respectively, we do not intend to conduct 
respondent selection and will proceed to issuing the initial CVD 
questionnaires to the companies identified. However, if comments are 
received which create a need for a respondent selection process, we 
intend to finalize our decision regarding respondent selection for 
Brazil and Vietnam within 20 days of publication of this notice.
---------------------------------------------------------------------------

    \34\ See Petitions at Volume I (page 30 and Exhibits I-46, I-57, 
and I-60); see also General Issues Supplement at 1-2 and Exhibit I-
46 (Revised).
---------------------------------------------------------------------------

China and India

    In the Petitions, the petitioner identified 50 companies in China 
and 14 companies in India as producers/exporters of hard empty 
capsules.\35\ Commerce intends to follow its standard practice in CVD 
investigations and calculate company-specific subsidy rates in this 
investigation. Following standard practice in CVD investigations, in 
the event Commerce determines that the number of exporters or producers 
is large such that Commerce cannot individually examine each company 
based on its resources, Commerce intends to select mandatory 
respondents based on U.S. Customs and Border Protection (CBP) entry 
data for U.S. imports under the appropriate Harmonized Tariff Schedule 
of the United States (HTSUS) subheading(s) listed in the ``Scope of the 
Investigations,'' in the appendix.
---------------------------------------------------------------------------

    \35\ See Petitions at Volume I (page 30 and Exhibit I-46); see 
also General Issues Supplement at 1 and Exhibit I-46 (Revised).
---------------------------------------------------------------------------

    On November 7 and 8, 2024, Commerce released CBP data on imports of 
hard empty capsules from China and India under administrative 
protective order (APO) to all parties with access to information 
protected by APO and indicated that interested parties wishing to 
comment on CBP data and/or respondent selection must do so within three 
business days of the publication date of the notice of initiation of 
these investigations.\36\ Comments must be filed electronically using 
ACCESS. An electronically filed document must be received successfully 
in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline. 
Commerce will not accept rebuttal comments regarding the CBP data or 
respondent selection.
---------------------------------------------------------------------------

    \36\ See Country-Specific Memoranda, ``Release of U.S. Customs 
and Border Protection Entry Data,'' dated November 7 and 8, 2024.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at <a href="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.

Distribution of Copies of the Petitions

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petitions has been 
provided to the GOB, GOC, GOI, and GOV via ACCESS. To the extent 
practicable, we will attempt to provide a copy of the public version of 
the Petitions to each exporter named in the Petitions, as provided 
under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of hard empty capsules from Brazil, China, 
India, and/or Vietnam are materially injuring, or threatening material 
injury to, a U.S. industry.\37\ A negative ITC determination for any 
country will result in the investigation being terminated with respect 
to that country.\38\ Otherwise, these CVD investigations will proceed 
according to statutory and regulatory time limits.
---------------------------------------------------------------------------

    \37\ See section 703(a)(1) of the Act.
    \38\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors of production under 19 CFR 351.408(c) or 
to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); 
(iv) evidence placed on the record by Commerce; and (v) evidence other 
than factual information described in (i)-(iv). Section 351.301(b) of 
Commerce's regulations requires any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted \39\ and, if the information is 
submitted to rebut, clarify, or correct factual information already on 
the record, to provide an explanation identifying the information 
already on the record that the factual information seeks to rebut, 
clarify, or correct.\40\ Time limits for the submission of factual 
information are addressed in 19 CFR 351.301, which provides specific 
time limits based on the type of factual information being submitted. 
Interested parties should review the regulations prior to submitting 
factual information in these investigations.
---------------------------------------------------------------------------

    \39\ See 19 CFR 351.301(b).
    \40\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301, or as otherwise specified by 
Commerce.\41\ For submissions that are due from multiple parties 
simultaneously, an extension request will be considered untimely if it 
is filed after 10:00 a.m. ET on the due date. Under certain 
circumstances, Commerce may elect to specify a different time limit by 
which extension requests will be considered untimely for submissions 
which are due from multiple parties simultaneously. In such a case, we 
will inform parties in a letter or memorandum of the deadline 
(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, standalone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to

[[Page 91684]]

submitting factual information in these investigations.\42\
---------------------------------------------------------------------------

    \41\ See 19 CFR 351.302.
    \42\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
---------------------------------------------------------------------------

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\43\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\44\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \43\ See section 782(b) of the Act.
    \44\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
<a href="https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</a>.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letters of 
appearance). Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\45\
---------------------------------------------------------------------------

    \45\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
---------------------------------------------------------------------------

    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act, and 19 CFR 351.203(c).

    Dated: November 13, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigations

    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 HECs 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.
[FR Doc. 2024-27008 Filed 11-19-24; 8:45 am]
BILLING CODE 3510-DS-P


</pre></body>
</html>
Indexed from Federal Register on November 20, 2024.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.