2026-03485Notice

U.S. Slaps Extra Taxes on Foreign Empty Pill Capsules

Published Date: 2/23/2026

Notice

Summary

The U.S. is putting extra taxes on hard empty capsules imported from Brazil, China, India, and Vietnam because these countries were found to be unfairly helping their capsule makers. This move protects American capsule makers from unfair competition starting February 23, 2026. Importers will now pay more, helping U.S. businesses stay strong and fair.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Duties on China, India, Vietnam Backdated

If you import hard empty capsules from China, India, or Vietnam, countervailing duties will be assessed on unliquidated entries entered or withdrawn for consumption on or after March 31, 2025. The notice lists ad valorem subsidy rates: China — Jiangsu Lefan 3.14%, Shanxi JC 8.81%, All Others 6.90%; India — ACG group 7.06%, All Others 7.06%; Vietnam — Suheung Vietnam 2.45%, All Others 2.45%.

Brazil Duties Effective on Publication; Deposits Refunded

For hard empty capsules from Brazil, countervailing duties will be assessed beginning on the date of publication of the ITC's final determination in the Federal Register (applicable February 23, 2026) with a subsidy rate of 10.67% for ACG do Brasil S.A. and All Others. Because the ITC's Brazil determination is threat-based, CBP must refund any cash deposits or bonds posted since the preliminary CVD determination in accordance with section 706(b)(2) of the Tariff Act.

Suspension Reinstated; Cash Deposits Resume; Provisional Gap

On publication of the ITC final determinations (February 23, 2026), Commerce directed CBP to reinstate suspension of liquidation and require cash deposits equal to the listed subsidy rates at the time importers normally deposit estimated duties. Entries of capsules made on or after July 29, 2025 and prior to publication of the ITC's final determinations were liquidated without regard to countervailing duties and are not subject to assessment.

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Key Dates

Published Date
2/23/2026

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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