Notice2025-23826
Hard Empty Capsules From India: Final Affirmative Determination of Sales at Less Than Fair Value
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 imports of hard empty capsules (capsules) from India are being, or are likely to be, sold in the United States at less than fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act), for the period of investigation (POI) October 1, 2023, to 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 60613-60616]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23826]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-934]
Hard Empty Capsules From India: 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
imports of hard empty capsules (capsules) from India are being, or are
likely to be, sold in the United States at
[[Page 60614]]
less than fair value (LTFV), as provided in section 735 of the Tariff
Act of 1930, as amended (the Act), for the period of investigation
(POI) October 1, 2023, to September 30, 2024.
DATES: Applicable December 29, 2025.
FOR FURTHER INFORMATION CONTACT: Joseph Molokwu or Luke Caruso, AD/CVD
Operations, Office IV, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8043 or (202) 482-2081,
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 India, in which it also postponed the final determination
until October 14, 2025.\1\ On September 5, 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 India: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of
Final Determination and Extension of Provisional Measures, 90 FR
22699 (May 29, 2025) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis for the
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Hard Empty Capsules from India,'' dated September 5, 2025 (Post-
Preliminary Analysis).
\3\ See Memorandum, ``Notification of Deadlines for the
Submission of Case and Rebuttal Briefs,'' dated September 15, 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 results
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 Commerce published 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 Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (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 in the Less-Than-Fair-Value
Investigation of Hard Empty Capsules from India,'' 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 India.
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 responses
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 Less-Than-Fair-Value Investigations, 89 FR 91684 (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 Act. Specifically, we conducted on-site
verifications of the sales and cost information submitted by ACG
Associated Capsules Private Limited (ACG India) and HealthCaps India
Limited (HIL).\10\ We used standard verification procedures, including
an examination of relevant sales and accounting records, and original
source documents provided by ACG India and HIL.
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\10\ See Memoranda, ``Verification of the Sales and Cost
Responses of ACG Associated Capsules Private Limited in the Less
Than Fair Value Investigation of Hard Empty Capsules from India,''
dated September 15, 2025, ``Verification of the Constructed Export
Price Sales of ACG Associated Capsules Private Limited's U.S.
Affiliate ACG North America LLC in the Less Than Fair Value
Investigation of Hard Empty Capsules from India,'' dated September
15, 2025, and ``Verification of the Sales and Cost Responses of
HealthCaps India Limited in the Less Than Fair Value Investigation
of Hard Empty Capsules from India,'' dated September 15, 2025.
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Analysis of Comments Received
All issues raised in the case 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 dumping margin calculations for ACG
India and HIL since the Preliminary Determination and Post-Preliminary
Analysis. In addition, Commerce has relied on adverse facts available
under sections 776(a) of the Act for ACG India. For a discussion of
these changes, see the Issues and Decision Memorandum.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that Commerce shall
determine an estimated all-others rate for all exporters and producers
not individually examined. This rate shall be an amount equal to the
weighted average of the estimated weighted-average dumping margins
established for exporters and producers individually investigated,
excluding any zero and de minimis dumping margins, and any margins
determined entirely under section 776 of the Act.
Commerce calculated individual estimated weighted-average dumping
margins for ACG India and HIL that are not zero, de minimis, or based
entirely on facts otherwise available. Publicly-ranged total U.S. sales
values are not available for each of the companies examined in this
investigation.
[[Page 60615]]
Therefore, Commerce calculated the estimated weighted-average dumping
margin for all-other producers and exporters using a simple average of
the estimated weighted-average dumping margins calculated for the
examined respondents.\11\
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\11\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted-average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sales
values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. Publicly-ranged total U.S. sales values are not
available for each of the companies examined in this investigation.
Accordingly, we cannot calculate an estimated weighted-average
dumping margin based on a weighted-average to consider applying to
the non-examined respondents in this investigation. Instead, we have
determined to calculate the simple average of the estimated
weighted-average dumping margins calculated for the examined
companies to the companies not selected for individual examination
in this investigation. For a complete analysis of the data, see
Memorandum, ``Final Determination All-Others Rate Calculation,''
dated concurrently with this notice.
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Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist:
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\12\ In the Preliminary Determination, Commerce preliminarily
determined that these companies are a single entity. See Preliminary
Determination PDM at 4-5; see also Memorandum, ``Preliminary
Affiliation and Collapsing Analysis Memorandum,'' dated April 21,
2025. No parties commented on this determination; thus, we continue
to treat these companies as a single entity for purposes of this
final determination.
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Cash deposit rate
Estimated weighted- (adjusted for
Exporter or producer average dumping subsidy offset(s))
margin (percent) (percent)
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ACG Associated Capsules Private Limited; ACG Universal Capsules 26.69 19.71
Private Limited; and Custom Capsules Private Limited \12\.........
HealthCaps India Limited........................................... 10.66 3.68
All Others......................................................... 18.68 11.70
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Disclosure
Commerce intends to disclose the calculations and analysis
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 and Cash Deposit Requirements
In accordance with section 735(c)(1)(B) of the Act, we instructed
U.S. Customs and Border Protection (CBP) to suspend liquidation of all
entries of subject merchandise, as described in Appendix I of this
notice, which 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 instructed CBP to discontinue the
suspension of 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.
If the U.S. International Trade Commission (ITC) publishes an
affirmative final injury determination, then Commerce will publish an
antidumping duty order, reinstate the suspension of liquidation under
section 736(a) of the Act, and require a cash deposit of estimated
antidumping duties for entries of subject merchandise in the amounts
indicated above, in accordance with section 736(a) of the Act. If the
ITC determines that material injury, or threat of material injury, does
not exist, then this proceeding will be terminated, the suspension of
liquidation will be lifted, and all cash deposits for estimated
antidumping duties will be refunded.
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)
investigation, when CVD provisional measures are in effect.
Accordingly, where Commerce made an affirmative determination for
countervailable export subsidies, Commerce would offset the estimated
weighted-average dumping margins by the appropriate export subsidy
rate.\13\ Any such adjusted cash deposit rates may be found in the
``Final Determination'' section above. If the U.S. International Trade
Commission (ITC) makes a final affirmative determination of injury due
to both dumping and subsidies, then the cash deposit rate will include
the offsets for the export subsidies collected as part of the CVD final
determination.
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\13\ See Preliminary Determination PDM at 18.
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ITC Notification
In accordance with section 735(d) of the Act, Commerce will notify
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) of capsules for importation from
India no later than 45 days after this final determination. If the ITC
determines that such injury does not exist, then this proceeding will
be terminated, all cash deposits posted will be refunded, and
suspension of liquidation will be lifted. If the ITC determines that
such injury does exist, then Commerce will issue an antidumping duty
order directing CBP to assess, upon further instruction by Commerce,
antidumping duties on all imports of the subject merchandise entered,
or withdrawn from warehouse, for consumption on or after the effective
date of the suspension of liquidation, as discussed in the ''
Suspension of Liquidation and Cash Deposit Requirements'' 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 the 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
[[Page 60616]]
hereby requested. Failure to comply with the regulations and terms of
an APO is a sanctionable violation.
Notification to Interested Parties
This final determination and notice are 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 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 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, 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 these investigations 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. Discussion of the Issues
Comment 1: Whether Commerce Should Correct Certain Errors in Its
Calculation of ACG's Estimated Weighted-Average Dumping Margin
Comment 2: Whether Commerce Should Apply Adverse Facts Available
(AFA) in Calculating ACG's Final Estimated Weighted-Average Dumping
Margin
Comment 3: Whether Commerce Improperly Rejected ACG North
America LLC (ACG NA)'s Minor Correction of the Reported U.S. Duty
Expenses
Comment 4: Whether Commerce Should Apply AFA in Calculating
HIL's Inland Freight from Warehouse to Customer Expenses
Comment 5: Whether Commerce Has a Statutory Basis to Depart from
the Average-to-Average (A-to-A) Comparison Method
V. Recommendation
[FR Doc. 2025-23826 Filed 12-23-25; 8:45 am]
BILLING CODE 3510-DS-P
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