Extra Taxes Hit Chinese Empty Capsules for Unfair Aid
Published Date: 12/29/2025
Notice
Summary
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.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Countervailing Duties Begin December 29
The Department of Commerce made a final affirmative finding and countervailing duties will apply to hard empty capsules from China effective December 29, 2025. This means importers of the covered capsules can face extra import taxes on those shipments starting on that date, intended to offset unfair subsidies to Chinese producers.
Exact Duty Rates Set for Producers
Commerce assigned ad valorem countervailable subsidy rates for the investigation period (January 1, 2023 through December 31, 2023): Jiangsu Lefan 3.14 percent, Shanxi JC 8.81 percent, and an All-Others rate of 6.90 percent. Those percentage rates are the estimated duties that can be required as cash deposits or assessed if an order is issued.
Cash Deposits, Suspension, and Possible Refunds
Commerce instructed CBP to collect cash deposits and suspend liquidation for entries of subject merchandise entered or withdrawn for consumption on or after March 31, 2025; CBP discontinued suspension for entries on or after July 29, 2025 but continued suspension for entries on or before July 28, 2025. If the U.S. International Trade Commission (ITC) finds no material injury within 45 days, the proceeding will terminate and all estimated duties deposited will be refunded; if the ITC finds injury, Commerce will issue a CVD order and duties will be assessed as described.
Which Capsules Are Covered
The order covers hard empty capsules defined as two prefabricated hollow sections (cap and body) composed of at least 80% water-soluble polymer appropriate for human/animal consumption, that disintegrate in aqueous tests within 2 hours. Commerce also lists HTSUS subheadings (including 9602.00.1040, 9602.00.5010, and others) that may be used for import classification.
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Key Dates
Department and Agencies
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Previous / Next Documents
Previous: 2025-23824, Hard Empty Capsules From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value
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.
Next: 2025-23826, Hard Empty Capsules From India: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce found that hard empty capsules from India are being sold in the U.S. for less than their fair price from October 2023 to September 2024. This means importers from India will face new duties starting December 29, 2025, to keep things fair for American businesses. If you’re involved in importing or selling these capsules, get ready for some changes that could affect prices and deadlines.