[Federal Register Volume 90, Number 102 (Thursday, May 29, 2025)]
[Notices]
[Pages 22699-22702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09700]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-934]
Hard Empty Capsules From India: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of Final
Determination and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that hard empty capsules (capsules) from India are being, or
are likely to be, sold in the United States at less than fair value
(LTFV). The period of investigation (POI) is October 1, 2023, through
September 30, 2024. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable May 29, 2025.
FOR FURTHER INFORMATION CONTACT: Luke Caruso or Joseph Molokwu, 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) 482-2081 or (202) 482-8043,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on November
20, 2024.\1\ On March 5, 2025, Commerce postponed the preliminary
determination of this investigation until May 22, 2025.\2\ For a
complete description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\3\ A list of
topics included in the Preliminary Decision Memorandum is included as
Appendix II to this notice. The Preliminary 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
https://access.trade.gov. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\1\ 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).
\2\ See Hard Empty Capsules from Brazil, the People's Republic
of China, India, and the Socialist Republic of Vietnam: Postponement
of Preliminary Determinations in the Less-Than-Fair Value
Investigations, 90 FR 11257 (March 5, 2025).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Less-Than-Fair-Value Investigation
of Hard Empty Capsules from India'' dated concurrently with, and
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The merchandise covered by this investigation is capsules from
India. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ in
the Initiation Notice, Commerce set aside a period of time for parties
to raise issues regarding product coverage (i.e., scope).\5\ Certain
interested parties commented on the scope of the investigation as it
appeared in the Initiation Notice. For a summary of the product
coverage comments and rebuttal responses submitted to the record for
this preliminary determination, and accompanying discussion and
analysis of all comments timely received, see the Preliminary Scope
Decision Memorandum.\6\ Commerce is not preliminarily modifying the
scope language as it appeared in the Initiation Notice. See the scope
in Appendix I to this notice. In the Preliminary Scope Decision
Memorandum, Commerce established the deadline for parties to submit
scope case and rebuttal briefs.\7\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ 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 Decision
Memorandum).
\7\ Id. at 10.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Constructed export prices have been calculated
in accordance with section 772(b) of the Act. Normal value is
calculated in accordance with section 773 of the Act. For a full
description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in
the
[[Page 22700]]
preliminary determination 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 margins, and any margins determined entirely under section 776
of the Act.
Commerce calculated estimated weighted-average dumping margins for
ACG Associated Capsules Private Limited (ACG India) \8\ and HealthCaps
India Limited (HIL) that are not zero, de minimis, or based entirely on
facts otherwise available. Commerce calculated the all-others rate
using an average of the estimated weighted-average dumping margins
calculated for the examined respondents.\9\
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\8\ On April 21, 2025, Commerce determined that ACG India,
Customs Capsules Private Limited and ACG Universal Capsules Private
Limited are affiliated companies (collectively, ACG) pursuant to
section 771(33)(E) of the Act. See Memorandum, ``Preliminary
Affiliation and Collapsing Analysis Memorandum,'' dated April 21,
2025 (Collapsing Memorandum) and accompanying Preliminary Decision
Memorandum.
\9\ 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 U.S. sales values are not available
for all the companies in this investigation. Accordingly, we cannot
calculate a weighted-average margin to consider applying to the non-
selected respondents in this proceeding. Instead, we have determined
to apply the simple average of the margins we calculated for the
selected companies to the companies not selected for individual
examination in this proceeding. For a complete analysis of the data,
see Memorandum, ``Subsidy Offset Calculation for Mandatory
Respondents and All Others Rate,'' dated concurrently with this
notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\10\ Adjusted for export subsidies of 9.87 percent for all
companies. See Hard Empty Capsules from India: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination, 90 FR 14356
(April 1, 2025), and accompanying Preliminary Decision Memorandum.
\11\ Commerce preliminarily determines that ACG Associated
Capsules Private Limited, ACG Universal Capsules Private Limited and
Custom Capsules Private Limited are a single entity. See Preliminary
Decision Memorandum.
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Cash deposit rate
Weighted-average (adjusted for export
Exporter or producer dumping margin subsidy offsets)
(percent) (percent)) \10\
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ACG Associated Capsules Private Limited; ACG Universal Capsules 24.78 14.91
Private Limited; and Custom Capsules Private Limited \11\.........
HealthCaps India Limited........................................... 3.60 0.00
All Others......................................................... 14.19 4.32
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise, as described in Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will
instruct CBP to require a cash deposit as follows: (1) The cash deposit
rate for the subject merchandise exported by a company listed above
will be equal to the company-specific estimated weighted-average
dumping margins, as adjusted for the export subsidy offset, determined
in this preliminary determination; (2) if the exporter is not a
respondent identified above, but the producer is, then the cash deposit
rate will be equal to the company-specific estimated weighted-average
dumping margin, as adjusted for the export subsidy offset, established
for that producer of the subject merchandise and (3) the cash deposit
rate for all other producers and exporters will be equal to the all-
others estimated weighted-average dumping margin, as adjusted for the
export subsidy offset.
Commerce normally adjusts cash deposits for estimated antidumping
duties by the amount of export subsidies countervailed in a companion
countervailing duty (CVD) proceeding, when CVD provisional measures are
in effect. Accordingly, where Commerce preliminarily made an
affirmative determination for countervailable export subsidies,
Commerce has offset the estimated weighted-average dumping margin by
the appropriate CVD rate. Any such adjusted cash deposit rate may be
found in the ``Preliminary Determination'' section above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting estimated
antidumping duty cash deposits unadjusted for countervailed export
subsidies at the time that the provisional CVD measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination under
administrative protective order 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 accordance with 19 CFR
351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
[[Page 22701]]
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in the
case briefs, may be filed not later than five days after the date for
filing case briefs.\12\ Interested parties who submit case briefs or
rebuttal briefs in this proceeding must submit: (1) a table of contents
listing each issue; and (2) a table of authorities.\13\
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\12\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\14\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\15\
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\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On May 2, 2025, pursuant to 19 CFR 351.210(e)(2), ACG requested
Commerce postpone the final determination, by 60 days after the
publication of the preliminary determination and provisional measures
be extended to a period not to exceed six months.\16\ On May 9, 2025,
pursuant to 19 CFR 351.210(b)(2)(i) and 19 CFR 351.210(e)(i), Lonza
Greenwood LLC (the petitioner) requested that, if the preliminary
determination was negative, that Commerce postpone the final
determination and that provisional measures be extended to a period not
to exceed six months.\17\ In accordance with section 735(a)(2)(A) of
the Act and 19 CFR 351.210(e)(2), because: (1) the preliminary
determination is affirmative; (2) the requesting exporters accounts for
a significant proportion of exports of the subject merchandise; and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination.
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\16\ See ACG's Letter, ``Request to Postpone the Final
Determination,'' dated May 2, 2025.
\17\ See Petitioner's Letter, ``Request for Postponement of the
Department's Antidumping Duty Final Determination,'' dated May 9,
2025.
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U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: May 22, 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 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 this investigation
are those that
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disintegrate in water 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 investigations is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Affiliation and Single Entity Treatment
V. Discussion of the Methodology
VI. Currency Conversion
VII. Adjustments to Cash Deposit Rates for Export Subsidies in the
Companion Countervailing Duty Investigation
VIII. Recommendation
[FR Doc. 2025-09700 Filed 5-28-25; 8:45 am]
BILLING CODE 3510-DS-P