On October 24, 2024, Lonza Greenwood LLC (“Lonza” or “Petitioner”), filed a petition for the imposition of antidumping and countervailing duties on U.S. imports of hard empty capsules from Brazil, China, India and Vietnam.
SCOPE OF THE INVESTIGATION
The following language describes the imported merchandise from Brazil, China, India and Vietnam:
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.
PETITIONERS
Lonza Greenwood LLC
535 North Emerald Road Greenwood, SC 29646
Phone: 864-942-3851
Website: https://www.lonza.com/
Emilee Terry (Director, Associate General Counsel) Phone: 618-978-9895
E-mail: emilee.terry@lonza.com
COUNSEL FOR PETITIONERS
SIDLEY AUSTIN LLP
1501 K Street N.W.
Washington, D.C. 20005
(202) 736-8000
NAMED PRODUCERS/EXPORTERS
For a list of foreign producers/exporters alleged by Petitioners, please see Attachment I.
NAMED IMPORTERS
For a list of importers alleged by the Petitioner, please see Attachment II.
ESTIMATED SCHEDULE
| Event | Earliest Date |
| Petition Filed | October 24, 2024 |
| DOC Initiation | November 13, 2024 |
| ITC Preliminary Investigation: | |
| Questionnaires Due | November 7, 2024 |
| Request to appear at hearing | November 12, 2024 |
| Hearing | November 14, 2024 |
| Briefs | November 19, 2024 |
| ITC Vote | December 8, 2024 |
| DOC Investigation Schedule: | |
| DOC Preliminary Antidumping Determination | April 2, 2025 |
| DOC Final Antidumping Determination | June 16, 2025 |
| DOC Preliminary Countervailing Determination | January 17, 2025 |
| DOC Final Countervailing Determination | April 2, 2025 |
| ITC Final Investigation: | |
| ITC Final AD Determination | July 31, 2025 |
| ITC Final CVD Determination | May 17, 2025 |
ALLEGED DUMPING MARGINS
Brazil: 78.43% – 98.74%
China: 136.51% – 170.91%
India : 57.50% – 86.34%
Vietnam: 65.97% – 89.33%
Periods of Investigation: For Brazil and India, the antidumping duty period of investigation will be October 1, 2023 through September 30, 2024. For China and Vietnam, considered by Commerce to be non-market economies, the antidumping duty period of investigation will be April 1, 2024 through September 30, 2024.
ALLEGED COUNTERVAILING DUTY MARGINS
Above de minimis.
Periods of Investigation: For all CVD investigations, the period of investigation will be January 1, 2023 through December 31, 2023.
ALLEGED SUBSIDIES
For a list of alleged subsidies the Petitioner, please see Attachment III.
IMPORTS OF SUBJECT MERCHANDISE
| 2021 | 2022 | 2023 | 2023 Jan-June | 2024 Jan-June | |
| Brazil | |||||
| Quantity (in ‘000 units) | 1,632,654 | 994,227 | 1,718,426 | 23,325 | 640,825 |
| Value US $) | 3,668,489 | 2,853,869 | 4,029,535 | 79,473 | 1,467,180 |
| AUV ($/units) | 2.24 | 2.87 | 2.34 | 3.40 | 2.28 |
| China | |||||
| Quantity (in ‘000 units) | 14,066,752 | 15,018,218 | 9,594,167 | 3,722,621 | 6,310,842 |
| Value US $) | 67,731,215 | 83,151,398 | 49,325,943 | 20,181,696 | 31,633,177 |
| AUV ($/units) | 4.81 | 5.53 | 5.14 | 5.42 | 5.01 |
| India | |||||
| Quantity (in ‘000 units) | 14,872,331 | 17,410,788 | 18,697,334 | 8,522,576 | 8,306,819 |
| Value US $) | 51,903,855 | 65,168,145 | 67,218,682 | 30,504,047 | 27,787,221 |
| AUV ($/units) | 4.38 | 3.74 | 3.59 | 3.57 | 3.34 |
| Vietnam | |||||
| Quantity (in ‘000 units) | 8,881,910 | 10,992,599 | 9,119,111 | 3,541,961 | 7,120,986 |
| Value US $) | 33,998,855 | 39,474,890 | 26,050,462 | 11,198,204 | 21,156,754 |
| AUV ($/units) | 3.82 | 3.59 | 2.85 | 3.16 | 2.97 |
CONTACT US For more information concerning this petition and how it may affect your business, please contact Nithya Nagarajan, Dan Wilson, Jeffrey Neeley, or Stephen Brophy.