Notice2025-23828
Hard Empty Capsules From the Socialist Republic of Vietnam: 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 Socialist Republic of Vietnam (Vietnam) 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.
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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 60626-60628]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23828]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-847]
Hard Empty Capsules From the Socialist Republic of Vietnam: 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 Socialist Republic of Vietnam
(Vietnam) 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: Jinny Ahn or Harrison Tanchuck, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0339 or (202) 482-7421,
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 Vietnam, in which it also postponed the final
determination until October 14, 2025.\1\ On July 23, 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 Socialist Republic of
Vietnam: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, Postponement of Final Determination, and Extension of
Provisional Measures, 90 FR 22708 (May 29, 2025) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis in the Less-
Than-Fair-Value Investigation of Hard Empty Capsules from the
Socialist Republic of Vietnam,'' dated July 23, 2025 (Post-
Preliminary Analysis).
\3\ See Memorandum, ``Briefing Schedule,'' dated August 14,
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="http://access.trade.gov">http://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 Socialist Republic
of Vietnam,'' 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
Vietnam. 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 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: 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 Tariff Act of 1930, as amended (the Act).
Specifically, we conducted on-site verifications of sales and cost
information submitted by Suheung Vietnam Co., Ltd. (SHVN) 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 SHVN.
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 calculation for SHVN since
the Preliminary Determination and Post-Preliminary Analysis. For a
discussion of these changes, see the Issues and Decision Memorandum.
Use of Adverse Facts Available
Commerce finds that, pursuant to sections 776(a)(2)(B) and (C) of
the Act, the use of partial adverse facts available is warranted in
determining the
[[Page 60627]]
dumping rate for SHVN. For further discussion, see the Issues and
Decision Memorandum.
Separate Rate Company and the Vietnam-Wide Entity
We preliminarily granted a separate rate to SHVN, the sole company
that submitted a separate rate application in this investigation.\10\
We received no comments from interested parties on Commerce's
preliminary separate rate determination for SHVN. Accordingly, we
continue to find that SHVN is eligible for a separate rate.
Additionally, because we preliminarily did not find that the Vietnam-
wide entity failed to cooperate in this investigation, we preliminarily
assigned the estimated weighted-average dumping margins calculated for
SHVN as the estimated weighted-average dumping margin for the Vietnam-
wide entity. No party commented on our preliminary separate rate
determination or our finding with respect to the Vietnam-wide entity.
Therefore, we continue to find that SHVN is eligible for a separate
rate. We also continue to assign the estimated weighted-average dumping
margins calculated for SHVN to the Vietnam-wide entity.
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\10\ See Preliminary Determination, 90 FR at 22708.
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Combination Rates
Consistent with the Preliminary Determination and Policy Bulletin
05.1,\11\ Commerce calculated combination rates for the company
eligible for a separate rate.
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\11\ 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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Cash deposit rate
Weighted-average (adjusted for export
Producer Exporter dumping margin subsidy offset)
(percent) (percent)) \12\
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Suheung Vietnam Co., Ltd................ Suheung Vietnam Co., Ltd.. 47.12 46.24
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Vietnam-Wide Entity................................................. 47.12 46.24
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Disclosure
Commerce intends to disclose the calculations performed in
connection with this final determination to interested parties within
five days after 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).
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\12\ We are applying an export subsidy offset to the mandatory
respondent. See unpublished Federal Register notice entitled, ``Hard
Empty Capsules from the Socialist Republic of Vietnam: Final
Affirmative Countervailing Duty Determination,'' dated concurrently
with this notice (CVD Final Determination). For the Vietnam-wide
entity, we continue to calculate the adjusted cash deposit rate by
deducting the export subsidy rate calculated for SHVN in the
companion CVD Final Determination.
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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 all
entries of subject merchandise, as described in Appendix I of this
notice, which are 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) issues a final
affirmative injury determination, we will issue 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
such entries of subject merchandise in the amounts indicated above, 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 Vietnamese 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 Vietnam-wide
entity; and (3) for all non-Vietnamese 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 Vietnamese
exporter/producer combination that supplied that non-Vietnamese
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.
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 24-26.
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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
[[Page 60628]]
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.
Administrative Protective Order (APO)
This notice also 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 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. Adjustment to Cash Deposit Rate for Export Subsidies
IV. Changes Since the Preliminary Determination
V. Application of Facts Available and Use of Adverse Inference
VI. Discussion of the Issues
Comment 1: Total Adverse Facts Available (AFA)
Comment 2: Selection of the Primary Surrogate Country
Comment 3: Unreported Packing Inputs
Comment 4: Calculation of Surrogate Financial Ratios
Comment 5: Unreported Supplier Distances
VII. Recommendation
[FR Doc. 2025-23828 Filed 12-23-25; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 29, 2025.
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