Petition Filed for New AD/CV Duties on Hard Empty Capsules From 4 Countries
A domestic producer recently filed petitions with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on hard empty capsules from Brazil, China, India and Vietnam. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CVD orders and the assessment of AD and CVD on importers. Lonza Greenwood requested the investigation.
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Hard empty capsules are two-piece unfilled cylindrical shells made primarily of a nontoxic, biodegradable, biocompatible and water-soluble polymer material, and are used by the pharmaceutical and nutraceutical industries.
Proposed Scope
The petition proposes the following scope for the investigations:
"The merchandise subject to the scope of this investigation is hard empty capsules (HECs), which are unfilled cylindrical shells composed of at least 80 percent by weight of a non-toxic, biodegradable, biocompatible, and water soluble polymer, and may also contain water, additives, opacifiers, colorants, and processing aids. HECs may also be imprinted or otherwise decorated with markings.
"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. However, HECs may also be made of other non-toxic, biodegradable, biocompatible, and water soluble polymer materials.
"HECs 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.
"HECs are covered by the scope of this investigation regardless of polymer material, additives, transparency, opacity, color, imprinting, or other markings.
"HECs 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 HECs 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.
"Products that do not disintegrate/dissolve in a liquid biorelevant medium (e.g., water) under tests specified in the United States Pharmacopeia – National Formulary (USP-NF), or equivalent disintegration/dissolution tests, within 2 hours are not covered by the scope of this investigation.
"HECs are classifiable under subheadings 9602.00.1040 or 9602.00.5010 of the Harmonized Tariff Schedule of the United States (HTSUS). In addition, gelatin HECs may be imported under HTSUS subheading 3503.00.5510; HPMC HECs may be imported under HTSUS subheading 3923.90.0080; and pullulan HECs 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."
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate an antidumping duty investigation. Commerce will accept comments on industry support through Nov. 5.