US Slaps Duties on China's Cheap Pill Shells
Published Date: 12/29/2025
Notice
Summary
The U.S. Department of Commerce found that hard empty capsules from China are being sold in the U.S. for less than their fair value between April and September 2024. This means importers might face extra duties to level the playing field for American businesses. These changes take effect starting December 29, 2025, so companies should get ready for new costs and rules.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Antidumping finding may trigger duties
The Department of Commerce determined that hard empty capsules from China were sold at less than fair value for April 1, 2024 through September 30, 2024. As of December 29, 2025, importers may face antidumping duties or related requirements as a result of this final affirmative determination.
Most Chinese exporters assigned 18.71% rate
Commerce assigned an estimated weighted-average dumping margin and cash deposit rate of 18.71 percent to a long list of Chinese producers/exporters and to the China-wide entity. If the U.S. International Trade Commission (ITC) later finds material injury and an antidumping order is issued, importers of subject merchandise will be required to provide cash deposits at these rates.
Suspension of liquidation dates and reinstatement risk
Commerce instructed U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise entered or withdrawn for consumption on or after May 29, 2025; Commerce later directed discontinuation of suspension for entries on or after November 25, 2025 while continuing suspension for entries on or before November 24, 2025. If the ITC issues a final affirmative injury determination, Commerce will reinstate suspension of liquidation and require cash deposits for entries on or after the effective date of the suspension of liquidation.
Shanxi JC gets 0.00% margin and refunds/exclusion
Commerce found a 0.00 percent dumping margin for Shanxi JC Biological Technology Co., Ltd.; Commerce will discontinue suspension of liquidation and refund any cash deposits already collected for that producer/exporter combination and exclude its merchandise from any antidumping duty order. However, entries of Shanxi JC merchandise in other exporter/producer combinations or shipments by third parties that sourced from Shanxi JC remain subject to the China-wide rate.
ITC timeline and conditional outcomes
Commerce will notify the ITC of its final affirmative LTFV determination and the ITC must make its injury determination no later than 45 days after this final determination. If the ITC finds no material injury, the proceeding will be terminated and all estimated duties deposited will be refunded or canceled; if the ITC finds injury, Commerce will issue an antidumping duty order and duties will be assessed.
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Key Dates
Department and Agencies
Related Federal Register Documents
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Previous / Next Documents
Previous: 2025-23823, Hard Empty Capsules From Brazil: Final Affirmative Countervailing Duty Determination
The U.S. Department of Commerce found that Brazilian makers of hard empty capsules got unfair government help, so they’re adding extra taxes (countervailing duties) on these imports starting December 29, 2025. This means Brazilian capsule exporters will pay more to sell in the U.S., helping American businesses compete fairly. Deadlines shifted a bit due to a government shutdown, but the new rules kick in soon!
Next: 2025-23825, Hard Empty Capsules From the People's Republic of China: Final Affirmative Countervailing Duty Determination
The U.S. Department of Commerce found that Chinese makers of hard empty capsules got unfair government help in 2023. Because of this, extra taxes (called countervailing duties) will be added to these capsules starting December 29, 2025. This means importers will pay more, helping U.S. businesses compete fairly.