Notice2025-23824
Hard Empty Capsules From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
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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 hard empty capsules (capsules) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV) for the period of investigation April 1, 2024, through September 30, 2024.
Full Text
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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Notices]
[Pages 60623-60626]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23824]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-184]
Hard Empty Capsules From the People's Republic of China: Final
Affirmative Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
hard empty capsules (capsules) from the People's Republic of China
(China) are being, or are likely to be, sold in the United States at
less than fair value (LTFV) for the period of investigation April 1,
2024, through September 30, 2024.
DATES: Applicable December 29, 2025.
FOR FURTHER INFORMATION CONTACT: Rebecca Janz or Jerry Xiao, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2972 or (202) 482-2273,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 29, 2025, Commerce published in the Federal Register its
preliminary affirmative determination in the LTFV investigation of
capsules from China, in which it also postponed the final determination
until October 14, 2025.\1\ On August 27, 2025, Commerce issued a post-
preliminary analysis memorandum in which it made certain changes to its
differential pricing analysis.\2\ We invited interested parties to
comment on the Preliminary Determination and changes to the
differential pricing analysis.\3\
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\1\ See Hard Empty Capsules from the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures, 90 FR 22704 (May 29, 2025) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Post-Preliminary Analysis for the
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Hard Empty Capsules from the People's Republic of China,'' dated
August 27, 2025 (Post-Preliminary Analysis).
\3\ See Memorandum, ``Briefing Schedule,'' dated August 28,
2025.
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Due to the lapse in appropriations and Federal Government shutdown,
on November 14, 2025, Commerce tolled all deadlines in administrative
proceedings by 47 days.\4\ 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.\5\ Accordingly, the deadline for this final
determination is now December 18, 2025.
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\4\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\5\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
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A summary of the events that occurred since the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for this final determination, may be found in the Issues and
Decision Memorandum.\6\ The Issues and Decision Memorandum is a public
document and is on file electronically 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>.
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\6\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of Sales at Less Than Fair Value in
the 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).
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Scope of the Investigation
The products covered by this investigation are capsules from China.
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.\7\ We received
scope case and rebuttal briefs from multiple interested parties. For a
summary of the product coverage comments and rebuttal response
submitted to the record for this final determination, and accompanying
discussion and analysis of all comments timely received, see the Final
Scope Memorandum.\8\ In the Final Scope Memorandum, Commerce determined
that it is modifying the scope language as it appeared in the
Initiation Notice.\9\ See Appendix I.
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\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:
Scope Comments Decision Memorandum for the Preliminary
Determination,'' dated March 24, 2025 (Preliminary Scope
Memorandum).
\8\ 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).
\9\ 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).
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Verification
Commerce conducted verification of the information relied upon in
making its final determination in this investigation, in accordance
with section 782(i) of the Tariff Act of 1930, as amended (the Act).
Specifically, we conducted on-site verifications of the sales and cost
information submitted by Shandong Healsee Capsule Ltd. (Shandong
Healsee) and Shanxi JC Biological Technology Co., Ltd. (Shanxi JC) for
use in our final determination. We used standard verification
procedures, including an examination of relevant sales and accounting
records, and original source documents provided by Shandong Healsee and
Shanxi JC.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
interested parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached to this notice as Appendix II.
Changes Since the Preliminary Determination
We made certain changes to the margin calculations for Shandong
Healsee and Shanxi JC since the Preliminary Determination and Post-
Preliminary Analysis. For a discussion of these changes, see the Issues
and Decision Memorandum.
Separate Rate Companies and the China-Wide Entity
We preliminarily granted a separate rate to certain respondents
that we did
[[Page 60624]]
not select for individual examination.\10\ Additionally, because we
preliminarily did not find that the China-wide entity failed to
cooperate in this investigation, we preliminarily assigned this same
rate as the estimate weighted-average dumping margin for the China-wide
entity.\11\ No party commented on our preliminary separate rate
determinations or our findings with respect to the China-wide entity.
Therefore, we continue to find that Shandong Healsee, Shanxi JC, and
certain non-individually examined companies that are listed in the
``Final Determination'' rate table below, are eligible for a separate
rate. We also continue to assign the same rate assigned to the non-
individually examined companies to the China-wide entity.
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\10\ See Preliminary Determination, 90 FR at 22705.
\11\ Id.
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Combination Rates
Consistent with the Preliminary Determination and Policy Bulletin
05.1,\12\ Commerce calculated combination rates for the companies
eligible for a separate rate.
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\12\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available
on Commerce's website at <a href="http://enforcement.trade.gov/policy/bull05-1.pdf">http://enforcement.trade.gov/policy/bull05-1.pdf</a>.
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Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist:
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\13\ To determine the cash deposit rate, Commerce normally
adjusts the estimated weighted-average dumping margin by the amount
of export subsidies countervailed in a companion countervailing duty
(CVD) proceeding, when CVD provisional measures are in effect.
Accordingly, where Commerce has made a final affirmative
determination for countervailable export subsidies, Commerce offsets
the estimated weighted-average dumping margin by the appropriate CVD
rate. However, in the final determination of the companion CVD
investigation of capsules from China, we found no export subsidies.
See the unpublished Federal Register notice entitled ``Hard Empty
Capsules from the People's Republic of China: Final Affirmative
Countervailing Duty Determination,'' signed and dated concurrently
with this Federal Register notice. Therefore, Commerce has not
adjusted the cash deposit rate for export subsidies in the companion
CVD investigation.
\14\ Hubei Kornnac Pharmaceutical Co., Ltd. (Hubei Kornnac)
initially filed a separate rate application under the name ``Hubei
Humanwell Pharmaceutical Excipients Co., Ltd.'' and subsequently
notified Commerce that the company's name changed to Hubei Kornnac.
We preliminarily determined it was appropriate to allow the name
change. See Preliminary Determination, 90 FR at 22705 n.13. No party
commented on this determination; thus, we continue to find it is
appropriate to allow the name change and grant Hubei Kornnac a
separate rate.
\15\ In the Preliminary Determination, we listed the name of
this company as ``Shanxi Guangsheng Medicinal Capsule Co., Ltd.
A.K.A. Shanxi Guangsheng Capsule Co., Ltd.'' See Preliminary
Determination, 90 FR at 22706. However, for customs purposes, the
appropriate marker between a company's name and an ``also known as''
name is a semicolon; thus, we are correcting the format of the
company's names for our final determination.
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Cash deposit
Weighted-average rate
Producer Exporter dumping margin (percent)
(percent) \13\
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Shandong Healsee Capsule Ltd.............. Shandong Healsee Capsule Ltd...... 18.71 18.71
Shanxi JC Biological Technology Co., Ltd.. Shanxi JC Biological Technology 0.00 0.00
Co., Ltd.
Guizhou Guang De Li Pharmaceuticals Co., Guizhou Guang De Li 18.71 18.71
Ltd. Pharmaceuticals Co., Ltd.
Hebei Kangxin Plant Capsule Co., Ltd...... Hebei Kangxin Plant Capsule Co., 18.71 18.71
Ltd.
Hubei Kornnac Pharmaceutical Co., Ltd \14\ Hubei Kornnac Pharmaceutical Co., 18.71 18.71
Ltd.
Jiangsu Lefan Capsule Co., Ltd............ Jiangsu Lefan Capsule Co., Ltd.... 18.71 18.71
Jiujiang Angtai Capsule Co., Ltd.......... Jiujiang Angtai Capsule Co., Ltd.. 18.71 18.71
Qingdao Yiqing Biotechnology Co., Ltd..... Qingdao Yiqing Biotechnology Co., 18.71 18.71
Ltd.
Shaanxi Genex Bio-Tech Co., Ltd........... Shaanxi Genex Bio-Tech Co., Ltd... 18.71 18.71
Shanghai Guang De Li Capsule Co., Ltd..... Shanghai Guang De Li Capsule Co., 18.71 18.71
Ltd.
Shanxi Guangsheng Medicinal Capsule Co., Shanxi Guangsheng Medicinal 18.71 18.71
Ltd.; Shanxi Guangsheng Capsule Co., Ltd. Capsule Co., Ltd.; Shanxi
Guangsheng Capsule Co., Ltd \15\.
Shaoxing Kangke Capsule Co., Ltd.......... Shaoxing Kangke Capsule Co., Ltd.. 18.71 18.71
Shaoxing Renhe Capsule Co., Ltd........... Shaoxing Renhe Capsule Co., Ltd... 18.71 18.71
Xinchang County Hexin Capsule Co., Ltd.... Xinchang County Hexin Capsule Co., 18.71 18.71
Ltd.
Xinchang County No.6 Capsule Factory...... Xinchang Paulo Import And Export 18.71 18.71
Co., Ltd.
Shaoxing Kangke Capsule Co., Ltd.......... Xinchang Paulo Import And Export 18.71 18.71
Co., Ltd.
Zhejiang Huaguang Capsule Co., Ltd........ Xinchang Paulo Import And Export 18.71 18.71
Co., Ltd.
Shanxi Guangsheng Capsule Co., Ltd........ Xinchang Paulo Import And Export 18.71 18.71
Co., Ltd.
Zhejiang Pujiang Enerkang Capsule Co., Ltd Xinchang Paulo Import And Export 18.71 18.71
Co., Ltd.
Yantai Oriental Pharmacap Co., Ltd........ Yantai Oriental Pharmacap Co., Ltd 18.71 18.71
Ningbo Capsulcn Capsule Co., Ltd.......... Zhejiang Capsulcn Machinery Co., 18.71 18.71
Ltd.
Shaoxing Zhongya Capsules Industry Co., Zhejiang Capsulcn Machinery Co., 18.71 18.71
Ltd. Ltd.
Shandong Healsee Capsule Ltd.............. Zhejiang Capsulcn Machinery Co., 18.71 18.71
Ltd.
Zhejiang Guangjuyuan Biotechnology Co., Zhejiang Capsulcn Machinery Co., 18.71 18.71
Ltd. Ltd.
Zhejiang Huaguang Capsule Co., Ltd........ Zhejiang Capsulcn Machinery Co., 18.71 18.71
Ltd.
Zhejiang Huaguang Capsule Co., Ltd........ Zhejiang Huaguang Capsule Co., Ltd 18.71 18.71
Zhejiang Huili Capsules Co., Ltd.......... Zhejiang Huili Capsules Co., Ltd.. 18.71 18.71
Zhejiang Lujian Capsule Co., Ltd.......... Zhejiang Lujian Capsule Co., Ltd.. 18.71 18.71
China-Wide Entity......................... .................................. 18.71 18.71
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Disclosure
Commerce intends to disclose the calculations performed in
connection with this final determination to interested parties within
five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in the Federal Register, in accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of subject
merchandise entries, as described in Appendix I of this notice, that
were entered, or withdrawn from warehouse, for consumption on or after
May 29, 2025, the date of publication of the Preliminary Determination
in the Federal Register. In accordance with section 733(d) of the Act,
we subsequently instructed CBP to discontinue the suspension of
[[Page 60625]]
liquidation of all entries of subject merchandise entered or withdrawn
from warehouse, on or after November 25, 2025, but to continue the
suspension of liquidation of all entries of subject merchandise on or
before November 24, 2025.
Because the estimated weighted-average dumping margin is zero for
the Shanxi JC producer/exporter combination, we will discontinue the
suspension of liquidation and refund all cash deposits already
collected for this producer/exporter combination, pursuant to section
735(c)(2) of the Act, and we will exclude merchandise exported and
produced by Shanxi JC from the antidumping duty order, in the event an
order is instituted, in accordance with section 735(a)(4) of the Act
and 19 CFR 351.204(e)(1). However, entries of shipments of subject
merchandise from Shanxi JC in any other exporter/producer combination,
or by third parties that sourced subject merchandise from the excluded
producer/exporter combination, will be subject to suspension of
liquidation at the China-wide entity rate.
Other than for entries produced and exported by Shanxi JC, if the
U.S. International Trade Commission (ITC) issues a final affirmative
injury determination, we will issue an antidumping duty order,
reinstate the suspension of liquidation, and require a cash deposit for
estimated weighted-average antidumping duties, in accordance with
section 736(a) of the Act, as follows: (1) the cash deposit rate for
the exporter/producer combinations listed in the table above will be
the rate identified in the table; (2) for all combinations of Chinese
exporters/producers of subject merchandise that have not received their
own separate rate above, the cash deposit rate will be the cash deposit
rate established for the China-wide entity; and (3) for all non-Chinese
exporters of subject merchandise that have not received their own
separate rate above, the cash deposit rate will be the cash deposit
rate applicable to the Chinese exporter/producer combination that
supplied that non-Chinese exporter.
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 canceled.
ITC Notification
In accordance with section 735(d) of the Act, Commerce will notify
the ITC of its final affirmative determination of sales at LTFV.
Because Commerce's final determination is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports, or sales (or the likelihood of sales) for importation, of
capsules no later than 45 days after this final determination. If the
ITC determines that material injury or threat of material injury does
not exist, this proceeding will be terminated, all cash deposits will
be refunded or canceled, and suspension of liquidation will be lifted.
If the ITC determines that such injury does exist, Commerce will issue
an antidumping duty order directing CBP to assess, upon further
instructions by Commerce, antidumping 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 above.
Administrative Protective Order (APO)
This notice serves as the only reminder to parties subject to an
APO of their responsibility concerning the disposition 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 sanctionable violation.
Notification to Interested Parties
This final determination is issued and published in accordance with
sections 735(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 the 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 the
investigation regardless of polymer material, additives,
transparency, opacity, color, imprinting, or other markings.
Hard empty capsules are also covered by the scope of the
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 the 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 the 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 the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes Since the Preliminary Determination
IV. Application of Facts Available (AFA) and Use of Adverse
Inference
V. Discussion of the Issues
Comment 1: Application of AFA to Shandong Healsee's U.S.
Expenses
Comment 2: Whether to Collapse Shandong Healsee with Its
Affiliated Input Suppliers
Comment 3: Application of AFA to Shanxi JC
Comment 4: Whether to Include Freight Expenses in the
Calculation of Shanxi JC's By-Product Input Costs
Comment 5: The Appropriate Short-Term Interest Rate for the
Calculation of
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Shanxi JC's Credit Expenses and Inventory Carrying Costs
Comment 6: Whether the Turkish Starch Surrogate Value is
Aberrational
Comment 7: Selection of the Primary Surrogate Country
Comment 8: Selection of Surrogate Financial Statements
Comment 9: Differential Pricing Test
VI. Recommendation
[FR Doc. 2025-23824 Filed 12-23-25; 8:45 am]
BILLING CODE 3510-DS-P
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