# Hard Empty Capsules From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination
**AGENCY:**
Enforcement and Compliance, International Trade Administration, Department of Commerce.
**SUMMARY:**
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of hard empty capsules (capsules) from the Socialist Republic of Vietnam (Vietnam). The period of investigation (POI) is January 1, 2023, through December 31, 2023.
**DATES:**
Applicable December 29, 2025.
**FOR FURTHER INFORMATION CONTACT:**
Jonathan Schueler or Joshua Nixon, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-9175 or (202) 482-8361, respectively.
**SUPPLEMENTARY INFORMATION:**
**Background**
On March 31, 2025, Commerce published the *Preliminary Determination* in the *Federal Register* , invited interested parties to comment on the *Preliminary Determination,* and aligned this countervailing duty (CVD) investigation with the final determination in the less-than-fair value investigation of capsules from Vietnam, in accordance with section 705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4). [^1]
[^1]*See Hard Empty Capsules from the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination with Final Antidumping Duty Determination,* 90 FR 14240 (March 31, 2025) ( *Preliminary Determination* ), and accompanying Preliminary Decision Memorandum (PDM).
Due to the lapse in appropriations and Federal Government shutdown, on November 14, 2025, Commerce tolled all deadlines in administrative proceedings by 47 days. [^2] Additionally, due to a backlog of documents that were electronically filed via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS) during the Federal Government shutdown, on November 24, 2025, Commerce tolled all deadlines in administrative proceedings by an additional 21 days. [^3] Accordingly, the deadline for this final determination is now December 18, 2025.
[^2]*See* Memorandum, “Deadlines Affected by the Shutdown of the Federal Government,” dated November 14, 2025.
[^3]*See* Memorandum, “Tolling of all Case Deadlines,” dated November 24, 2025.
For a complete description of the events that followed the *Preliminary Determination, see* the Issues and Decision Memorandum. [^4] The Issues and Decision Memorandum is a public document and is on file electronically via ACCESS. ACCESS is available to registered users at *https://access.trade.gov.* In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at *https://access.trade.gov/public/FRNoticesListLayout.aspx.*
[^4]*See* Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination of the Countervailing Duty Investigation of Hard Empty Capsules from the Socialist Republic of Vietnam,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
**Scope of the Investigation**
The products covered by this investigation are capsules. For a complete description of the scope of this investigation, *see* Appendix I.
**Scope Comments**
In the Preliminary Scope Memorandum, we set aside a period of time for parties to raise issues regarding product coverage ( *i.e.,* scope) in scope-specific case briefs or other written comments. [^5] We received scope case and rebuttal briefs from multiple interested parties. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, *see* the Final Scope Memorandum. [^6] In the Final Scope Memorandum, Commerce made certain changes to the scope language as it appeared in the *Initiation Notice.*[^7]*See* Appendix I.
[^5]*See* Memorandum, “Less-Than-Fair-Value and Countervailing Duty Investigations of Hard Empty Capsules from Brazil, the People's Republic of China, India, and the Socialist Republic of Vietnam: Scope Comments Decision Memorandum for the Preliminary Determination,” dated March 24, 2025 (Preliminary Scope Memorandum).
[^6]*See* Memorandum, “Less-Than-Fair-Value Investigations of Hard Empty Capsules from Brazil, the People's Republic of China, India, and the Socialist Republic of Vietnam, and Countervailing Duty Investigations from Brazil the People's Republic of China, India, and the Socialist Republic of Vietnam: Final Scope Decision Memorandum,” dated concurrently with this notice (Final Scope Memorandum).
[^7]*See Hard Empty Capsules from Brazil, the People's Republic of China, India, and the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations,* 89 FR 91680 (November 20, 2024) ( *Initiation Notice* ).
**Verification**
As provided in section 782(i) of the Act, in May 2025, Commerce conducted on-site verifications of the subsidy information reported by the Government of Vietnam, the Government of Korea, Suheung Vietnam Co., Ltd. (Suheung Vietnam), and Cuu Long Joint Stock Company. We used standard verification procedures, including an examination of relevant sales and accounting records, and original source documents provided by the respondents. [^8]
[^8]*See* Memoranda, “Verification of the Questionnaire Responses of Suheung Vietnam Co., Ltd.,” dated August 12, 2025; “Verification of the Questionnaire Responses of the Government of Vietnam,” dated August 21, 2025; “Verification of the Questionnaire Responses of the Government of Korea,” dated August 20, 2025; and “Verification of the Questionnaire Responses of Cuu Long Joint Stock Company,” dated August 12, 2025.
**Analysis of Subsidy Programs and Comments Received**
The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs by parties in this investigation, are discussed in the Issues and Decision Memorandum. For a list of the issues raised by parties, and addressed in the Issues and Decision Memorandum, *see* Appendix II.
**Methodology**
Commerce conducted this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce determines that there is a subsidy, *i.e.,* a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific. [^9] For a full description of the methodology underlying our final determination, *see* the Issues and Decision Memorandum.
[^9]*See* sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
In making this final determination, Commerce relied, in part, on facts available, pursuant to section 776(a) of the Act. [^10] For a full discussion of our application of facts available, *see* the “Use of Facts Otherwise Available” section in the Issues and Decision Memorandum.
[^10]*See* section 776(a) of the Act.
**Changes Since the Preliminary Determination**
Based on our findings at verification and our review and analysis of the comments received from parties, for this final determination, we made certain changes to the countervailable subsidy rate calculations for Suheung Vietnam and for all other producers/exporters from the *Preliminary Determination.* For a discussion of these changes, *see* the Issues and Decision Memorandum.
**All-Others Rate**
In accordance with section 705(c)(1)(B)(i) of the Act, we calculated an individual estimated countervailable subsidy rate for the mandatory respondent, Suheung Vietnam. Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, Commerce will determine an all-others rate equal to the weighted-average countervailable subsidy rates established for exporters and/or producers individually investigated, excluding any zero and *de minimis* countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. For this final determination, Suheung Vietnam's subsidy rate is not zero, *de minimis,* or determined entirely under section 776 of the Act. Consequently, we have assigned the subsidy rate calculated for Suheung Vietnam as the rate for all other producers and/or exporters.
**Final Determination**
Commerce determines that the following estimated countervailable subsidy rates exist for the period January 1, 2023, through December 31, 2023:
| Company | Subsidy rate |
| --- | --- |
| Suheung Vietnam Co., Ltd | 2.45 |
| All Others | 2.45 |
**Disclosure**
Commerce intends to disclose its calculations and analysis performed to interested parties in this final determination within five days of any public announcement, or if there is no public announcement, within five days of the date of the publication of this notice in the *Federal Register**,* in accordance with 19 CFR 351.224(b).
**Continuation of Suspension of Liquidation**
As a result of our *Preliminary Determination,* and pursuant to sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs and Border Protection (CBP) to collect cash deposits and suspend liquidation of entries of subject merchandise from Vietnam that were entered, or withdrawn from warehouse, for consumption on or after March 31, 2025, the date of publication of the *Preliminary Determination* in the *Federal Register* . In accordance with section 703(d) of the Act, on July 30, 2025, we instructed CBP to discontinue the suspension of liquidation of all entries of subject merchandise entered or withdrawn from warehouse on or after July 29, 2025, but to continue the suspension of liquidation of all entries of subject merchandise on or before July 28, 2025.
If the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, we will issue a CVD order, reinstate the suspension of liquidation under section 706(a) of the Act, and require a cash deposit of estimated countervailing duties for such entries of subject merchandise in the amounts indicated above. Pursuant to section 705(c)(2) of the Act, if the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated, and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled.
**ITC Notification**
In accordance with section 705(d) of the Act, Commerce will notify the ITC of its final affirmative determination that countervailable subsidies are being provided to producers and exporters of capsules from Vietnam. As Commerce's final determination is affirmative, in accordance with section 705(b) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of capsules from Vietnam. In addition, we are making available to the ITC all non-privileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance.
If the ITC determines that material injury does not exist, this proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue a CVD order directing CBP to assess, upon further instruction by Commerce, countervailing duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the “Continuation of Suspension of Liquidation” section.
**Administrative Protective Order**
In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO, in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.
**Notification to Interested Parties**
This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: December 18, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
**Appendix I**
**Scope of the Investigation**
The merchandise subject to the scope of this investigation is hard empty capsules, which are comprised of two prefabricated, hollowed cylindrical sections (cap and body). The cap and body pieces each have one closed and rounded end and one open end, and are constructed with different or equal diameters at their open ends.
Hard empty capsules are unfilled cylindrical shells composed of at least 80 percent by weight of a water soluble polymer that is considered non-toxic and appropriate for human or animal consumption by the United States Pharmacopeia—National Formulary (USP-NF), Food Chemical Codex (FCC), or equivalent standards. The most common polymer materials in HECs are gelatin derived from animal collagen (including, but not limited to, pig, cow, or fish collagen), hydroxypropyl methylcellulose (HPMC), and pullulan.
Hard empty capsules may also contain water and additives, such as opacifiers, colorants, processing aids, controlled release agents, plasticizers, and preservatives. Hard empty capsules may also be imprinted or otherwise decorated with markings.
Hard empty capsules are covered by the scope of these investigations regardless of polymer material, additives, transparency, opacity, color, imprinting, or other markings.
Hard empty capsules are also covered by the scope of these investigations regardless of their size, weight, length, diameter, thickness, and filling capacity.
Cap and body pieces of hard empty capsules are covered by the scope of these investigations regardless of whether they are imported together or separately, and regardless of whether they are imported in attached or detached form.
Hard empty capsules covered by the scope of these investigations are those that disintegrate in water, simulated intestinal fluid, simulated gastric fluid, or other similar water-based ( *i.e.,* aqueous) fluids within 2 hours under tests specified in Chapter 701 of the USP-NF, or equivalent disintegration tests.
Hard empty capsules are classifiable under subheadings 9602.00.1040 and 9602.00.5010 of the Harmonized Tariff Schedule of the United States (HTSUS). In addition, hard empty capsules may be imported under HTSUS subheading 1905.90.9090; gelatin hard empty capsules may be imported under HTSUS subheading 3503.00.5510; HPMC hard empty capsules may be imported under HTSUS subheading 3923.90.0080; and pullulan hard empty capsules may be imported under HTSUS subheading 2106.90.9998. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by these investigations is dispositive.
**Appendix II**
**List of Topics Discussed in the Issues and Decision Memorandum**
I. Summary
II. Background
III. Changes Since the *Preliminary Determination*
IV. Scope of the Investigation
V. Subsidies Valuation Information
VI. Use of Facts Otherwise Available
VII. Analysis of Programs
VIII. Analysis of Comments
Comment 1: Whether Commerce Has the Legal Authority Under the World Trade Organization (WTO) Rules and U.S. Law to Investigate Transnational Subsidies
Comment 2: Whether the Export Import Bank of Korea (KEXIM) Overseas Business Loan Program is Specific
Comment 3: Whether to Revise the Benchmark for the KEXIM Overseas Business Loan Program
Comment 4: Whether the Refund for Import Duties on Raw Materials Used to Produce Exports Program is Countervailable
Comment 5: Whether the Income Tax Preferences for Enterprises in Special Zones Program Provides a Benefit During the Period of Investigation (POI)
Comment 6: Whether the Exemption or Reduction From Land and Water Rents in Industrial Zones Program is Countervailable
Comment 7: Whether Commerce Should Apply Adverse Facts Available (AFA) to Suheung Vietnam to Countervail Certain Additional Loans
Comment 8: Whether Commerce Should Treat Suheung Vietnam's Unreported Import Duty Exemption as a Subsidy
IX. Recommendation