Notice2025-23823
Hard Empty Capsules From Brazil: Final Affirmative Countervailing Duty Determination
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
December 29, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of hard empty capsules (capsules) from Brazil. The period of investigation (POI) is January 1, 2023, through December 31, 2023.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Notices]
[Pages 60607-60609]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23823]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-865]
Hard Empty Capsules From Brazil: Final Affirmative Countervailing
Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of hard empty capsules (capsules) from Brazil. The period of
investigation (POI) is January 1, 2023, through December 31, 2023.
DATES: Applicable December 29, 2025.
FOR FURTHER INFORMATION CONTACT: Samuel Evans, AD/CVD Operations,
Office IX, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2420.
SUPPLEMENTARY INFORMATION:
Background
On March 31, 2025, Commerce published the Preliminary Determination
in the Federal Register and invited interested parties to comment.\1\
In the Preliminary Determination, and in accordance with section
705(a)(1) of the Tariff Act of
[[Page 60608]]
1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce aligned
the final CVD determination with the final determination in the less-
than-fair-value investigation of capsules from Brazil.\2\
---------------------------------------------------------------------------
\1\ See Hard Empty Capsules from Brazil: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 90 FR 14235
(March 31, 2025) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ Id., 90 FR at 14236.
---------------------------------------------------------------------------
Due to the lapse in appropriations and Federal Government shutdown,
on November 14, 2025, Commerce tolled all deadlines in administrative
proceedings by 47 days.\3\ Additionally, due to a backlog of documents
that were electronically filed via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS) during the Federal Government shutdown, on November 24,
2025, Commerce tolled all deadlines in administrative proceedings by an
additional 21 days.\4\ Accordingly, the deadline for this final
determination is now December 18, 2025.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
---------------------------------------------------------------------------
For a complete discussion of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\5\
The Issues and Decision Memorandum is a public document and is made
available to the public via ACCESS. ACCESS is available to registered
users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of
the Issues and Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
---------------------------------------------------------------------------
\5\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Hard Empty Capsules from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are hard empty capsules
from Brazil. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In the Preliminary Scope Memorandum, we set aside a period of time
for parties to raise issues regarding product coverage (i.e., scope) in
scope-specific case briefs or other written comments.\6\ We received
scope case and rebuttal briefs from multiple interested parties. For a
summary of the product coverage comments and rebuttal responses
submitted to the record for this final determination, and accompanying
discussion and analysis of all comments timely received, see the Final
Scope Memorandum.\7\ In the Final Scope Memorandum, Commerce determined
that it is modifying the scope language as it appeared in the
Initiation Notice.\8\ See Appendix I.
---------------------------------------------------------------------------
\6\ See Memorandum, ``Less-Than-Fair-Value Investigations of
Hard Empty Capsules from Brazil, the People's Republic of China,
India, and the Socialist Republic of Vietnam and Countervailing Duty
Investigations from Brazil, the People's Republic of China, India,
and the Socialist Republic of Vietnam: Preliminary Scope Decision
Memorandum,'' dated March 24, 2025 (Preliminary Scope Memorandum).
\7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Hard Empty Capsules from Brazil, the People's
Republic of China, India, and the Socialist Republic of Vietnam:
Final Scope Decision Memorandum,'' dated concurrently with this
notice (Final Scope Memorandum).
\8\ See Hard Empty Capsules from Brazil, the People's Republic
of China, India, and the Socialist Republic of Vietnam: Initiation
of Countervailing Duty Investigations, 89 FR 91680 (November 20,
2024) (Initiation Notice).
---------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Act, in May 2025, Commerce
verified the information reported by ACG do Brasil S.A. (ACG Brazil)
for use in our final determination. We used standard verification
procedures, including an examination of relevant accounting records and
original source documents provided at verification.\9\
---------------------------------------------------------------------------
\9\ See Memorandum, ``Verification of the Questionnaire
Responses of ACG do Brasil S.A.,'' dated June 3, 2025.
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs that were submitted by interested parties
in this investigation are discussed in the Issues and Decision
Memorandum. For a list of the issues raised by interested parties and
addressed in the Issues and Decision Memorandum, see Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific. For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\10\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
---------------------------------------------------------------------------
In making this final determination, Commerce relied, in part, on
facts otherwise available, including with an adverse inference,
pursuant to sections 776(a) and (b) of the Act. For a further
discussion of our application of adverse facts available (AFA), see the
Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our findings at verification, we made changes to our
subsidy rate calculations for ACG Brazil for the provision of
electricity for less-than-adequate-remuneration program, as well as the
Ex-Tarif[aacute]rio program. For a discussion of these changes, see the
Issues and Decision Memorandum.
All-Others Rate
Section 705(c)(5)(A)(i) of the Act states that, for companies not
individually investigated, Commerce will determine an all-others rate
equal to the weighted-average countervailable subsidy rates established
for exporters and/or producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 of the Act.
Commerce calculated an individual estimated countervailable subsidy
rate for ACG Brazil, the only individually examined exporter/producer
in this investigation. Because the only individually calculated rate is
not zero, de minimis, or based entirely on facts otherwise available,
the estimated countervailable subsidy rate calculated for ACG Brazil is
the rate assigned to all other producers and exporters, pursuant to
section 705(c)(5)(A)(i) of the Act.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2023, through December
31, 2023:
------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
------------------------------------------------------------------------
ACG do Brasil S.A....................................... 10.67
All Others.............................................. 10.67
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose its calculations performed to
interested parties in this final determination within five days of its
public announcement or, if there is no public announcement, within five
days of the date of the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
[[Page 60609]]
Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise from Brazil that were
entered, or withdrawn from warehouse, for consumption, on or after
March 31, 2025, the date of the publication of the Preliminary
Determination in the Federal Register.\11\ In accordance with section
703(d) of the Act, we instructed CBP to discontinue the suspension of
liquidation of all entries of subject merchandise entered or withdrawn
from warehouse, on or after July 29, 2025, but to continue the
suspension of liquidation of all entries of subject merchandise on or
before July 28, 2025.
---------------------------------------------------------------------------
\11\ See Preliminary Determination, 90 FR at 14236.
---------------------------------------------------------------------------
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
(CVD) order, reinstate the suspension of liquidation under section
706(a) of the Act, and require a cash deposit of estimated
countervailing duties for entries of subject merchandise in the amounts
indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated, and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or cancelled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of capsules
from Brazil. As Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
import of capsules from Brazil. In addition, we are making available to
the ITC all non-privileged and non-proprietary information in our
files, provided the ITC confirms that it will not disclose such
information, either publicly or under administrative protective order
(APO), without the written consent of the Assistant Secretary for
Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a CVD order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Suspension of
Liquidation'' section.
Administrative Protective Order
This notice will serve as the final reminder to parties subject to
an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: December 18, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise subject to the scope of this investigation 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 this
investigation regardless of polymer material, additives,
transparency, opacity, color, imprinting, or other markings.
Hard empty capsules are also covered by the scope of this
investigation 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 this investigation 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 this investigation
are those that disintegrate in water, simulated intestinal fluid,
simulated gastric fluid, or other similar water-based (i.e.,
aqueous) fluids 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 this investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Discussion of the Issues
Comment 1: Whether to Apply Adverse Facts Available to
Countervail the Access Road Funding--Pouso Alegre Municipality
Program
Comment 2: Whether the Government of Brazil Provided Electricity
for Less Than Adequate Remuneration (LTAR) to ACG Brazil
Comment 3: Whether to Modify the Benchmark for the Provision of
Electricity for LTAR Program
VII. Recommendation
[FR Doc. 2025-23823 Filed 12-23-25; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on December 29, 2025.
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.