On October 24, 2024, the U.S. Department of Commerce (DOC) received a petition requesting an anti-dumping and countervailing duty investigation into hard capsule shells imported from Brazil, China, India, and Vietnam. The products under investigation are certain hard capsule shells, classified under HS codes 9602.00.1040 and 9602.00.5010, with case numbers A-552-847 and C-552-848. All four countries named are subject to both anti-dumping and countervailing duty investigations.
The petitioner, Lonza Greenwood LLC, filed the case on behalf of the U.S. domestic industry, with the petition officially validated on October 24, 2024.
According to the petition, two Vietnamese companies are among those accused of dumping and receiving subsidies. The petitioner claims that the total import value of the product from Vietnam in 2023 was approximately USD 26 million; from China, USD 49 million; from India, USD 67 million; and from Brazil, USD 4 million. According to the U.S. International Trade Commission (ITC) data, imports from Vietnam account for around 12% of the total imports of the investigated products into the United States.
- Proposed anti-dumping investigation period: April 2024 – September 2024
- Proposed countervailing duty investigation period: 2023
- Proposed injury investigation period: January 2021 – June 2024
U.S. Anti-Dumping and Countervailing Duty Investigation of Hard Capsule Shells from Vietnam
The petitioner has alleged anti-dumping margins for Vietnam ranging from 65.97% to 89.33%. As the U.S. considers Vietnam a non-market economy, the DOC will likely use third-country surrogate values, typically those from Indonesia, to calculate dumping margins for Vietnam.
Additionally, the petitioner alleges that Vietnamese producers/exporters of hard capsule shells have benefited from 23 subsidy programs provided by the Vietnamese government, which are claimed to have caused or threatened to cause significant injury to the U.S. hard capsule shell industry. The alleged subsidy programs fall into seven different categories.
In the next stage, the DOC will review the petition and decide whether or not to initiate an investigation. In certain exceptional cases, the DOC may extend the review period from the standard 20 days to a total of 40 days.
To protect their legitimate interests, related manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
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