India's Empty Capsules Hit with Duties: Shutdown Slows Fair Trade
Published Date: 12/29/2025
Notice
Summary
The U.S. Department of Commerce found that Indian makers of hard empty capsules got unfair government help, so they’re adding extra fees (countervailing duties) on these imports starting December 29, 2025. This means importers will pay more, helping U.S. businesses compete fairly. The investigation covered April 2023 to March 2024, and deadlines shifted due to a government shutdown.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 4 costs, 1 mixed.
7.06% Countervailing Duty Added
The Department of Commerce found countervailable subsidies for hard empty capsules from India and set an ad valorem countervailing duty rate of 7.06 percent for ACG and for all other Indian producers/exporters. This determination is applicable December 29, 2025, and covers the investigation period April 1, 2023 through March 31, 2024.
CBP Cash Deposits And Suspensions
Following the preliminary determination, Commerce instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise entered or withdrawn for consumption on or after March 31, 2025. Commerce later instructed CBP to discontinue suspension for entries on or after July 29, 2025 but to continue suspension for entries on or before July 28, 2025.
All-Others Assigned Same 7.06% Rate
Commerce determined that ACG's 7.06 percent countervailable subsidy rate will be assigned as the estimated all-others rate for any Indian producers or exporters not individually examined. That means companies from India not individually investigated will be treated the same (7.06%).
ITC Injury Decision And Possible Refunds
Commerce will notify the U.S. International Trade Commission (ITC) of its final affirmative countervailing determination, and the ITC will decide within 45 days whether U.S. industry is materially injured. If the ITC finds no material injury, the proceeding will be terminated and any estimated duties deposited will be refunded; if the ITC finds injury, Commerce will issue a CVD order and require countervailing duties for entries as described.
Products Covered And HTSUS Codes
The investigation covers hard empty capsules defined by composition and disintegration (disintegrate in aqueous fluids within 2 hours under USP-NF Chapter 701 tests) regardless of polymer, size, color, or markings. Covered HTSUS subheadings listed include 9602.00.1040 and 9602.00.5010, and other subheadings provided for convenience.
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Key Dates
Department and Agencies
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Previous / Next Documents
Previous: 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.
Next: 2025-23828, Hard Empty Capsules From the Socialist Republic of Vietnam: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce found that hard empty capsules from Vietnam are being sold in the U.S. for less than their fair price between April and September 2024. This means importers might face extra duties to level the playing field for American businesses. These changes kick in starting December 29, 2025, so keep an eye on your capsule shipments and costs!