U.S. Slaps Duties on Vietnam's Subsidized Empty Pill Capsules
Published Date: 12/29/2025
Notice
Summary
The U.S. Department of Commerce found that Vietnam’s hard empty capsule makers got unfair government help, so they’re adding extra fees (countervailing duties) on these capsules starting December 29, 2025. This means importers will pay more, helping U.S. businesses compete fairly. The investigation covered all of 2023, and the new rules kick in right away to keep things fair and square.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Suspension of Liquidation: March–July 2025 Timeline
Commerce instructed Customs and Border Protection (CBP) to suspend liquidation and collect cash deposits for entries entered or withdrawn for consumption on or after March 31, 2025 (the date of the Preliminary Determination). On July 30, 2025, Commerce instructed CBP to discontinue suspension of liquidation for entries on or after July 29, 2025, while continuing suspension for entries on or before July 28, 2025.
What Products Are Covered (Scope Details)
The investigation covers hard empty capsules defined as two-piece prefabricated hollow cylindrical sections (cap and body) composed of at least 80% by weight of a water-soluble polymer (e.g., gelatin, HPMC, pullulan) that disintegrate in aqueous fluids within 2 hours under USP–NF Chapter 701 tests. Relevant HTSUS subheadings listed include 9602.00.1040 and 9602.00.5010, among others.
Final Countervailable Rate: 2.45%
The Department of Commerce found countervailable subsidies for hard empty capsules from Vietnam for the period January 1, 2023 through December 31, 2023 and set an estimated ad valorem subsidy rate of 2.45% for Suheung Vietnam Co., Ltd. and for ‘All Others.’ This final determination is applicable December 29, 2025.
Possible CVD Order and Cash Deposits After ITC Review
Commerce will notify the U.S. International Trade Commission (ITC), which has 45 days to decide whether the U.S. industry is materially injured. If the ITC issues a final affirmative injury determination, Commerce will issue a countervailing duty (CVD) order, reinstate suspension of liquidation, and require cash deposits or assessments of estimated countervailing duties (the rate set is 2.45%) for subject imports entered or withdrawn for consumption on or after the effective suspension date.
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Key Dates
Department and Agencies
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Previous / Next Documents
Previous: 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!
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