Hard Empty Capsules From Brazil, the People's Republic of China, India, and the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigations, 91680-91684 [2024-27008]
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Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
The Petitions
On October 24, 2024, the U.S.
Department of Commerce (Commerce)
received countervailing duty (CVD)
petitions concerning imports of hard
empty capsules from Brazil, China,
India, and Vietnam filed in proper form
Administrative Protective Order (APO)
on behalf of Lonza Greenwood LLC (the
This notice serves as a final reminder
petitioner), a U.S. producer of hard
to parties subject to an APO of their
empty capsules.1 The CVD Petitions
responsibility concerning the
were accompanied by antidumping duty
disposition of proprietary information
(AD) petitions concerning imports of
disclosed under APO in accordance
hard empty capsules from Brazil, China,
with 19 CFR 351.305(a)(3). Timely
India, and Vietnam.2
written notification of the return or
Between October 28 and November 5,
destruction of APO materials or
2024, Commerce requested
conversion to judicial protective order is supplemental information pertaining to
hereby requested. Failure to comply
certain aspects of the Petitions.3
with the regulations and terms of an
Between October 30 and November 6,
APO is a sanctionable violation.
2024, the petitioner filed timely
responses to these requests for
Notification to Interested Parties
additional information.4
In accordance with section 702(b)(1)
This notice is published in
of the Tariff Act of 1930, as amended
accordance with sections 751(b)(1) and
(the Act), the petitioner alleges that the
777(i) of the Act, and 19 CFR 351.216,
Government of Brazil (GOB),
351.221(c)(3), 351.222, and
Government of China (GOC), the
351.225(f)(6).
Government of India (GOI), and the
Dated: November 13, 2024.
Government of Vietnam (GOV)
Abdelali Elouaradia,
(collectively, Governments) are
Deputy Assistant Secretary for Enforcement
providing countervailable subsidies,
and Compliance.
within the meaning of sections 701 and
[FR Doc. 2024–27007 Filed 11–19–24; 8:45 am]
771(5) of the Act, to producers of hard
BILLING CODE 3510–DS–P
empty capsules from Brazil, China,
India, and Vietnam and that such
imports are materially injuring, or
DEPARTMENT OF COMMERCE
threatening material injury to, the
domestic industry producing hard
International Trade Administration
empty capsules in the United States.
Consistent with section 702(b)(1) of the
[C–351–865, C–570–185, C–533–935, C–552– Act and 19 CFR 351.202(b), for those
848]
alleged programs on which we are
initiating CVD investigations, the
Hard Empty Capsules From Brazil, the
Petitions were accompanied by
People’s Republic of China, India, and
information reasonably available to the
the Socialist Republic of Vietnam:
petitioner supporting its allegations.
Initiation of Countervailing Duty
Commerce finds that the petitioner
Investigations
filed the Petitions on behalf of the
AGENCY: Enforcement and Compliance,
1 See Petitioner’s Letter, ‘‘Petitions for the
International Trade Administration,
Imposition of Antidumping and Countervailing
Department of Commerce.
Duties,’’ dated October 24, 2024 (Petitions).
to the same wheel studs that are subject
to the concurrent scope inquiry, the
concurrent scope inquiry is moot.
Therefore, we are rescinding the
concurrent scope inquiry in accordance
with 19 CFR 351.225(f)(6).
Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT: Seth
Brown at (202) 482–0029 (Brazil), Laura
Delgado at (202) 482–1468 and John
Conniff at (202) 482–1009 (the People’s
Republic of China (China)), Gorden
Struck at (202) 482–8151 (India), and
Jonathan Schueler at (202) 482–9175
(the Socialist Republic of Vietnam
(Vietnam)), AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
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DATES:
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2 Id.
3 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated October 28, 2024, see also
Country-Specific CVD Supplemental
Questionnaires: Brazil Supplemental, China
Supplemental, India Supplemental, and Vietnam
Supplemental, dated October 28, 29, and 30, 2024;
and Memorandum, ‘‘Phone Call,’’ dated November
5, 2024 (November 5, 2024, Memorandum).
4 See Petitioner’s Letters, ‘‘Petitioner’s Response
to the Department’s General Issues Questionnaire,’’
dated October 30, 2024 (General Issues
Supplement); see also Country-Specific CVD
Supplemental Responses: Brazil CVD Supplement,
China CVD Supplement, India CVD Supplement,
and Vietnam CVD Supplement, dated October 30,
2024, October 31, 2024, November 1, 2024, and
November 4, 2024; and Petitioner’s Letter,
‘‘Petitioner’s Response to the Department’s General
Issues Scope Questionnaire,’’ dated November 6,
2024 (Scope Supplement).
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domestic industry because the
petitioner is an interested party, as
defined in section 771(9)(C) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support with respect to the initiation of
the requested CVD investigations.5
Periods of Investigation
Because the Petitions were filed on
October 24, 2024, the periods of
investigation for the Brazil, China,
India, and Vietnam CVD investigations
are January 1, 2023, through December
31, 2023.6
Scope of the Investigations
The products covered by these
investigations are hard empty capsules
from Brazil, China, India, and Vietnam.
For a full description of the scope of
these investigations, see the appendix to
this notice.
Comments on the Scope of the
Investigations
On November 5, 2024, Commerce
requested information and clarification
from the petitioner regarding the
proposed scope to ensure that the scope
language in the Petitions is an accurate
reflection of the products for which the
domestic industry is seeking relief.7 On
November 6, 2024, the petitioner
provided clarifications and revised the
scope.8 The description of merchandise
covered by these investigations, as
described in the appendix to this notice,
reflects these clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(i.e., scope).9 Commerce will consider
all comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determinations. If scope comments
include factual information, all such
factual information should be limited to
public information.10 To facilitate
preparation of its questionnaires,
Commerce requests that scope
comments be submitted by 5:00 p.m.
Eastern Time (ET) on December 3, 2024,
which is 20 calendar days from the
signature date of this notice. Any
rebuttal comments, which may include
5 See section on ‘‘Determination of Industry
Support for the Petitions,’’ infra.
6 See 19 CFR 351.204(b)(2).
7 See November 5, 2024, Memorandum.
8 See Scope Supplement at 1–8 and Exhibit I–92.
9 See Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
10 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
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factual information, must be filed by
5:00 p.m. ET on December 13, 2024,
which is 10 calendar days from the
initial comment deadline.
Commerce requests that any factual
information that parties consider
relevant to the scope of the
investigations be submitted during that
time period. However, if a party
subsequently finds that additional
factual information pertaining to the
scope of the investigations may be
relevant, the party must contact
Commerce and request permission to
submit the additional information. All
scope comments must be filed
simultaneously on the records of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically via Enforcement and
Compliance’s Antidumping Duty and
Countervailing Duty Centralized
Electronic Service System (ACCESS),
unless an exception applies.11 An
electronically filed document must be
received successfully in its entirety by
the time and date it is due.
Consultations
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Pursuant to sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
the Governments of the receipt of the
Petitions and provided an opportunity
for consultations with respect to the
Petitions.12 Commerce held
consultations with the GOV on
November 7, 2024,13 the GOB on
November 12, 2024,14 and the GOI on
November 13, 2024.15 The GOC did not
request consultations.16
11 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014), for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook_on_Electronic_
Filing_Procedures.pdf.
12 See Commerce’s Letters, ‘‘Invitation for
Consultation to Discuss the Countervailing Duty
Petition,’’ dated October 25, 2024.
13 See Memorandum, ‘‘Consultations with the
Government of the Socialist Republic of Vietnam,’’
dated November 7, 2024; see also GOV’s Letter,
‘‘Comments on Countervailing Duty Petition,’’
dated November 5, 2024.
14 See Memorandum, ‘‘Consultations with the
Government of Brazil,’’ dated November 13, 2024.
15 See Memorandum, ‘‘Consultations with the
Government of India,’’ dated November 13, 2024.
16 The GOC submitted comments on the CVD
petition from China. See GOC’s Letter, ‘‘Comments
on Countervailing Duty Petition,’’ dated November
8, 2024.
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Determination of Industry Support for
the Petitions
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) at least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The U.S. International
Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
Commerce and the ITC apply the same
statutory definition regarding the
domestic like product,17 they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, Commerce’s determination is
subject to limitations of time and
information. Although this may result in
different definitions of the like product,
such differences do not render the
decision of either agency contrary to
law.18
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
17 See
section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d Algoma Steel Corp., Ltd. v. United States, 865
F.2d 240 (Fed. Cir. 1989)).
18 See
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‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
investigations.19 Based on our analysis
of the information submitted on the
record, we have determined that hard
empty capsules, as defined in the scope,
constitute a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.20
In determining whether the petitioner
has standing under section 702(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petitions
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigations,’’ in the appendix to this
notice. To establish industry support,
the petitioner provided its own
production of the domestic like product
in 2023 and compared this to the
estimated total 2023 production of the
domestic like product for the entire
industry.21 We relied on data provided
by the petitioner for purposes of
measuring industry support.22
Our review of the data provided in the
Petitions, the General Issues
Supplement, and other information
readily available to Commerce indicates
that the petitioner has established
industry support for the Petitions.23
First, the Petitions established support
from domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).24 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(i) of the Act
19 For a discussion of the domestic like product
analysis as applied to these cases and information
regarding industry support, see Checklists,
‘‘Countervailing Duty Investigation Initiation
Checklists: Hard Empty Capsules from Brazil, the
People’s Republic of China, India, and the Socialist
Republic of Vietnam,’’ dated concurrently with, and
hereby adopted by, this notice (Country-Specific
CVD Initiation Checklists), at Attachment II,
Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering Hard
Empty Capsules from Brazil, the People’s Republic
of China, India, and the Socialist Republic of
Vietnam (Attachment II). These checklists are on
file electronically via ACCESS.
20 See Attachment II of the Country-Specific CVD
Initiation Checklists.
21 Id.
22 For further discussion, see Attachment II of the
Country-Specific CVD Initiation Checklists.
23 For further discussion, see Attachment II of the
Country-Specific CVD Initiation Checklists.
24 Id.; see also section 702(c)(4)(D) of the Act.
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because the domestic producers (or
workers) who support the Petitions
account for at least 25 percent of the
total production of the domestic like
product.25 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petitions
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petitions.26 Accordingly, Commerce
determines that the Petitions were filed
on behalf of the domestic industry
within the meaning of section 702(b)(1)
of the Act.27
Injury Test
Because Brazil, China, India, and
Vietnam are ‘‘Subsidies Agreement
Countries’’ within the meaning of
section 701(b) of the Act, section
701(a)(2) of the Act applies to these
investigations. Accordingly, the ITC
must determine whether imports of the
subject merchandise from Brazil, China,
India, and/or Vietnam materially injure,
or threaten material injury to, a U.S.
industry.
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Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that imports of
the subject merchandise are benefiting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the U.S.
industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports from China,
India, and Vietnam exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.28
With respect to Brazil, while the
allegedly subsidized imports do not
exceed the statutory requirements for
negligibility,29 the petitioner alleges and
provides supporting evidence that: (1)
there is a reasonable indication that the
data obtained in the ITC’s investigation
will establish that imports exceed the
negligibility threshold; 30 and (2) there is
25 See Attachment II of the Country-Specific CVD
Initiation Checklists.
26 Id.
27 Id.
28 For further information regarding negligibility
and the injury allegation, see Country-Specific CVD
Initiation Checklists at Attachment III, Analysis of
Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing
Duty Petitions Covering Hard Empty Capsules from
Brazil, the People’s Republic of China, India, and
the Socialist Republic of Vietnam (Attachment III).
29 Id.
30 Id.; see also Statement of Administrative
Action Accompanying the Uruguay Round
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the potential that imports from Brazil
will imminently exceed the negligibility
threshold and, therefore, are not
negligible for purposes of a threat
determination.31 The petitioner’s
arguments regarding the limitations of
publicly available import data and the
collection of scope-specific import data
in the ITC’s investigation are consistent
with the SAA. Furthermore, the
petitioner’s arguments regarding the
potential for imports from Brazil to
imminently exceed the negligibility
threshold are consistent with the
statutory criteria for ‘‘negligibility in
threat analysis’’ under section
771(24)(A)(iv) of the Act, which
provides that imports shall not be
treated as negligible if there is a
potential that subject imports from a
country will imminently exceed the
statutory requirements for negligibility.
The petitioner contends that the
industry’s injured condition is
illustrated by the significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression and/or suppression;
lost sales and revenues; and decline in
the domestic industry’s production, U.S.
shipments, net sales, and financial
performance.32 We assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, cumulation,
as well as negligibility, and we have
determined that these allegations are
properly supported by adequate
evidence and meet the statutory
requirements for initiation.33
Initiation of CVD Investigations
Based upon the examination of the
Petitions and supplemental responses,
we find that they meet the requirements
of section 702 of the Act. Therefore, we
are initiating CVD investigations to
determine whether imports of hard
empty capsules from Brazil, China,
India, and Vietnam benefit from
countervailable subsidies conferred by
the GOB, GOC, GOI, and GOV,
respectively. In accordance with section
703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will
make our preliminary determinations no
later than 65 days after the date of these
initiations.
Agreements Act, H.R. Doc 103–316, Vol. 1 (1994)
(SAA).
31 See Attachment III of the Country-Specific CVD
Initiation Checklists; see also section 771(24)(A)(iv)
of the Act.
32 See Attachment III of the Country-Specific CVD
Initiation Checklists.
33 Id.
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Brazil
Based on our review of the Petitions,
we find that there is sufficient
information to initiate a CVD
investigation on 18 of the 18 programs
alleged by the petitioner. For a full
discussion of the basis for our decision
to initiate on each program, see the
Brazil CVD Initiation Checklist. A
public version of the initiation checklist
for this investigation is available on
ACCESS.
China
Based on our review of the Petitions,
we find that there is sufficient
information to initiate a CVD
investigation on 18 of the 19 programs
alleged by the petitioner. For a full
discussion of the basis for our decision
to initiate on each program, see the
China CVD Initiation Checklist. A
public version of the initiation checklist
for this investigation is available on
ACCESS.
India
Based on our review of the Petitions,
we find that there is sufficient
information to initiate a CVD
investigation on 22 of the 23 programs
alleged by the petitioner. For a full
discussion of the basis for our decision
to initiate on each program, see the
India CVD Initiation Checklist. A public
version of the initiation checklist for
this investigation is available on
ACCESS.
Vietnam
Based on our review of the Petitions,
we find that there is sufficient
information to initiate a CVD
investigation on 26 of the 26 programs
alleged by the petitioner. For a full
discussion of the basis for our decision
to initiate on each program, see the
Vietnam CVD Initiation Checklist. A
public version of the initiation checklist
for this investigation is available on
ACCESS.
Respondent Selection
Brazil and Vietnam
In the Petitions, the petitioner
identified two companies in Brazil (i.e.,
ACG do Brasil S.A. and Genix Industria
Farmaceutica LTDA (Qualicaps Brazil))
and two companies in Vietnam (i.e.,
Cuu Long Pharmaceutical Joint Stock
Company (DCL) and Suheung Vietnam
Co., Ltd.) as producers/exporters of hard
empty capsules and provided
independent third-party information as
support.34 We currently know of no
34 See Petitions at Volume I (page 30 and Exhibits
I–46, I–57, and I–60); see also General Issues
Supplement at 1–2 and Exhibit I–46 (Revised).
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additional producers/exporters of hard
empty capsules from Brazil and
Vietnam. Accordingly, Commerce
intends to individually examine all
known producers/exporters in the
investigations for Brazil and Vietnam
(i.e., the companies cited above). We
invite interested parties to comment on
this issue. Such comments may include
factual information within the meaning
of 19 CFR 351.102(b)(21). Parties
wishing to comment must do so within
three business days of the publication of
this notice in the Federal Register.
Comments must be filed electronically
using ACCESS. An electronically filed
document must be received successfully
in its entirety via ACCESS by 5:00 p.m.
ET on the specified deadline. Because
we intend to examine all known
producers/exporters in Brazil and
Vietnam, if no comments are received,
or if comments received further support
the existence of only these producers/
exporters in Brazil and Vietnam,
respectively, we do not intend to
conduct respondent selection and will
proceed to issuing the initial CVD
questionnaires to the companies
identified. However, if comments are
received which create a need for a
respondent selection process, we intend
to finalize our decision regarding
respondent selection for Brazil and
Vietnam within 20 days of publication
of this notice.
China and India
In the Petitions, the petitioner
identified 50 companies in China and
14 companies in India as producers/
exporters of hard empty capsules.35
Commerce intends to follow its standard
practice in CVD investigations and
calculate company-specific subsidy
rates in this investigation. Following
standard practice in CVD investigations,
in the event Commerce determines that
the number of exporters or producers is
large such that Commerce cannot
individually examine each company
based on its resources, Commerce
intends to select mandatory respondents
based on U.S. Customs and Border
Protection (CBP) entry data for U.S.
imports under the appropriate
Harmonized Tariff Schedule of the
United States (HTSUS) subheading(s)
listed in the ‘‘Scope of the
Investigations,’’ in the appendix.
On November 7 and 8, 2024,
Commerce released CBP data on imports
of hard empty capsules from China and
India under administrative protective
order (APO) to all parties with access to
35 See Petitions at Volume I (page 30 and Exhibit
I–46); see also General Issues Supplement at 1 and
Exhibit I–46 (Revised).
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information protected by APO and
indicated that interested parties wishing
to comment on CBP data and/or
respondent selection must do so within
three business days of the publication
date of the notice of initiation of these
investigations.36 Comments must be
filed electronically using ACCESS. An
electronically filed document must be
received successfully in its entirety via
ACCESS by 5:00 p.m. ET on the
specified deadline. Commerce will not
accept rebuttal comments regarding the
CBP data or respondent selection.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on Commerce’s website at
https://www.trade.gov/administrativeprotective-orders.
Distribution of Copies of the Petitions
In accordance with section
702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petitions has been provided to the
GOB, GOC, GOI, and GOV via ACCESS.
To the extent practicable, we will
attempt to provide a copy of the public
version of the Petitions to each exporter
named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its
initiation, as required by section 702(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petitions were filed, whether there
is a reasonable indication that imports
of hard empty capsules from Brazil,
China, India, and/or Vietnam are
materially injuring, or threatening
material injury to, a U.S. industry.37 A
negative ITC determination for any
country will result in the investigation
being terminated with respect to that
country.38 Otherwise, these CVD
investigations will proceed according to
statutory and regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors of
production under 19 CFR 351.408(c) or
to measure the adequacy of
36 See Country-Specific Memoranda, ‘‘Release of
U.S. Customs and Border Protection Entry Data,’’
dated November 7 and 8, 2024.
37 See section 703(a)(1) of the Act.
38 Id.
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remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)-(iv). Section 351.301(b)
of Commerce’s regulations requires any
party, when submitting factual
information, to specify under which
subsection of 19 CFR 351.102(b)(21) the
information is being submitted 39 and, if
the information is submitted to rebut,
clarify, or correct factual information
already on the record, to provide an
explanation identifying the information
already on the record that the factual
information seeks to rebut, clarify, or
correct.40 Time limits for the
submission of factual information are
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Interested parties should
review the regulations prior to
submitting factual information in these
investigations.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by
Commerce. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301,
or as otherwise specified by
Commerce.41 For submissions that are
due from multiple parties
simultaneously, an extension request
will be considered untimely if it is filed
after 10:00 a.m. ET on the due date.
Under certain circumstances, Commerce
may elect to specify a different time
limit by which extension requests will
be considered untimely for submissions
which are due from multiple parties
simultaneously. In such a case, we will
inform parties in a letter or
memorandum of the deadline (including
a specified time) by which extension
requests must be filed to be considered
timely. An extension request must be
made in a separate, standalone
submission; under limited
circumstances we will grant untimely
filed requests for the extension of time
limits, where we determine, based on 19
CFR 351.302, that extraordinary
circumstances exist. Parties should
review Commerce’s regulations
concerning the extension of time limits
and the Time Limits Final Rule prior to
39 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
41 See 19 CFR 351.302.
40 See
E:\FR\FM\20NON1.SGM
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91684
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
submitting factual information in these
investigations.42
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.43
Parties must use the certification
formats provided in 19 CFR
351.303(g).44 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Parties wishing to participate in these
investigations should ensure that they
meet the requirements of 19 CFR
351.103(d) (e.g., by filing the required
letters of appearance). Note that
Commerce has amended certain of its
requirements pertaining to the service of
documents in 19 CFR 351.303(f).45
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act, and 19 CFR 351.203(c).
Dated: November 13, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix
khammond on DSK9W7S144PROD with NOTICES
Scope of the Investigations
The merchandise subject to the scope of
these investigations 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
42 See 19 CFR 351.301; see also Extension of Time
Limits; Final Rule, 78 FR 57790 (September 20,
2013) (Time Limits Final Rule), available at https://
www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/201322853.htm.
43 See section 782(b) of the Act.
44 See Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
45 See Administrative Protective Order, Service,
and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069
(September 29, 2023).
VerDate Sep<11>2014
18:39 Nov 19, 2024
Jkt 265001
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 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.
[FR Doc. 2024–27008 Filed 11–19–24; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–351–864, A–570–184, A–533–934, A–552–
847]
Hard Empty Capsules From Brazil, the
People’s Republic of China, India, and
the Socialist Republic of Vietnam:
Initiation of Less-Than-Fair-Value
Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT:
Gemma Larsen at (202) 482–8125
(Brazil), Rebecca Janz at (202) 482–2972
(the People’s Republic of China
(China)), Luke Caruso at (202) 482–2081
(India), and Jinny Ahn at (202) 482–
0239 (the Socialist Republic of Vietnam
AGENCY:
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
(Vietnam)), AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On October 24, 2024, the U.S.
Department of Commerce (Commerce)
received antidumping duty (AD)
petitions concerning imports of hard
empty capsules from Brazil, China,
India, and Vietnam filed in proper form
on behalf of Lonza Greenwood LLC (the
petitioner), a U.S. producer of hard
empty capsules.1 The AD Petitions were
accompanied by countervailing duty
(CVD) petitions concerning imports of
hard empty capsules from Brazil, China,
India, and Vietnam.2
Between October 28 and November 5,
2024, Commerce requested
supplemental information pertaining to
certain aspects of the Petitions in
supplemental questionnaires.3 The
petitioner responded to Commerce’s
supplemental questionnaires between
October 30 and November 6, 2024.4
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of hard empty capsules from Brazil,
China, India, and Vietnam are being, or
are likely to be, sold in the United States
at less than fair value (LTFV) within the
meaning of section 731 of the Act, and
that imports of such products are
materially injuring, or threatening
material injury to, the hard empty
capsules industry in the United States.
Consistent with section 732(b)(1) of the
Act, the Petitions were accompanied by
information reasonably available to the
petitioner supporting its allegations.
1 See Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties,’’ dated October 24, 2024 (Petitions).
2 Id.
3 See Commerce’s Letters, ‘‘Supplemental
Questions,’’ dated October 28, 2024; see also
Country-Specific AD Supplemental Questionnaires:
Brazil Supplemental, China Supplemental, India
Supplemental, and Vietnam Supplemental, dated
October 28, 2024; and Memorandum, ‘‘Phone Call,’’
dated November 5, 2024 (November 5, 2024,
Memorandum).
4 See Petitioner’s Letters, ‘‘Petitioner’s Response
to the Department’s General Issues Questionnaire,’’
dated October 30, 2024 (General Issues
Supplement); see also Country-Specific AD
Supplemental Responses: Brazil AD Supplement,
China AD Supplement, India AD Supplement, and
Vietnam AD Supplement, dated November 1 and 5,
2024; Petitioner’s Letter, ‘‘Petitioner’s Response to
the Department’s General Issues Scope
Questionnaire,’’ dated November 6, 2024 (Scope
Supplement); and Country-Specific Second AD
Supplemental Responses: Second Brazil AD
Supplement and Second India AD Supplement,
dated November 6, 2024.
E:\FR\FM\20NON1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Notices]
[Pages 91680-91684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27008]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-865, C-570-185, C-533-935, C-552-848]
Hard Empty Capsules From Brazil, the People's Republic of China,
India, and the Socialist Republic of Vietnam: Initiation of
Countervailing Duty Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable November 13, 2024.
FOR FURTHER INFORMATION CONTACT: Seth Brown at (202) 482-0029 (Brazil),
Laura Delgado at (202) 482-1468 and John Conniff at (202) 482-1009 (the
People's Republic of China (China)), Gorden Struck at (202) 482-8151
(India), and Jonathan Schueler at (202) 482-9175 (the Socialist
Republic of Vietnam (Vietnam)), AD/CVD Operations, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On October 24, 2024, the U.S. Department of Commerce (Commerce)
received countervailing duty (CVD) petitions concerning imports of hard
empty capsules from Brazil, China, India, and Vietnam filed in proper
form on behalf of Lonza Greenwood LLC (the petitioner), a U.S. producer
of hard empty capsules.\1\ The CVD Petitions were accompanied by
antidumping duty (AD) petitions concerning imports of hard empty
capsules from Brazil, China, India, and Vietnam.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated October 24, 2024
(Petitions).
\2\ Id.
---------------------------------------------------------------------------
Between October 28 and November 5, 2024, Commerce requested
supplemental information pertaining to certain aspects of the
Petitions.\3\ Between October 30 and November 6, 2024, the petitioner
filed timely responses to these requests for additional information.\4\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
October 28, 2024, see also Country-Specific CVD Supplemental
Questionnaires: Brazil Supplemental, China Supplemental, India
Supplemental, and Vietnam Supplemental, dated October 28, 29, and
30, 2024; and Memorandum, ``Phone Call,'' dated November 5, 2024
(November 5, 2024, Memorandum).
\4\ See Petitioner's Letters, ``Petitioner's Response to the
Department's General Issues Questionnaire,'' dated October 30, 2024
(General Issues Supplement); see also Country-Specific CVD
Supplemental Responses: Brazil CVD Supplement, China CVD Supplement,
India CVD Supplement, and Vietnam CVD Supplement, dated October 30,
2024, October 31, 2024, November 1, 2024, and November 4, 2024; and
Petitioner's Letter, ``Petitioner's Response to the Department's
General Issues Scope Questionnaire,'' dated November 6, 2024 (Scope
Supplement).
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of Brazil
(GOB), Government of China (GOC), the Government of India (GOI), and
the Government of Vietnam (GOV) (collectively, Governments) are
providing countervailable subsidies, within the meaning of sections 701
and 771(5) of the Act, to producers of hard empty capsules from Brazil,
China, India, and Vietnam and that such imports are materially
injuring, or threatening material injury to, the domestic industry
producing hard empty capsules in the United States. Consistent with
section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged
programs on which we are initiating CVD investigations, the Petitions
were accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry because the petitioner is an interested party, as
defined in section 771(9)(C) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support with respect to the
initiation of the requested CVD investigations.\5\
---------------------------------------------------------------------------
\5\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
---------------------------------------------------------------------------
Periods of Investigation
Because the Petitions were filed on October 24, 2024, the periods
of investigation for the Brazil, China, India, and Vietnam CVD
investigations are January 1, 2023, through December 31, 2023.\6\
---------------------------------------------------------------------------
\6\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------
Scope of the Investigations
The products covered by these investigations are hard empty
capsules from Brazil, China, India, and Vietnam. For a full description
of the scope of these investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
On November 5, 2024, Commerce requested information and
clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ On November 6, 2024, the petitioner provided clarifications
and revised the scope.\8\ The description of merchandise covered by
these investigations, as described in the appendix to this notice,
reflects these clarifications.
---------------------------------------------------------------------------
\7\ See November 5, 2024, Memorandum.
\8\ See Scope Supplement at 1-8 and Exhibit I-92.
---------------------------------------------------------------------------
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\9\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information, all such
factual information should be limited to public information.\10\ To
facilitate preparation of its questionnaires, Commerce requests that
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on December
3, 2024, which is 20 calendar days from the signature date of this
notice. Any rebuttal comments, which may include
[[Page 91681]]
factual information, must be filed by 5:00 p.m. ET on December 13,
2024, which is 10 calendar days from the initial comment deadline.
---------------------------------------------------------------------------
\9\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
---------------------------------------------------------------------------
Commerce requests that any factual information that parties
consider relevant to the scope of the investigations be submitted
during that time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party must contact Commerce and
request permission to submit the additional information. All scope
comments must be filed simultaneously on the records of the concurrent
AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\11\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------
\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------
Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the Governments of the receipt of the Petitions and provided
an opportunity for consultations with respect to the Petitions.\12\
Commerce held consultations with the GOV on November 7, 2024,\13\ the
GOB on November 12, 2024,\14\ and the GOI on November 13, 2024.\15\ The
GOC did not request consultations.\16\
---------------------------------------------------------------------------
\12\ See Commerce's Letters, ``Invitation for Consultation to
Discuss the Countervailing Duty Petition,'' dated October 25, 2024.
\13\ See Memorandum, ``Consultations with the Government of the
Socialist Republic of Vietnam,'' dated November 7, 2024; see also
GOV's Letter, ``Comments on Countervailing Duty Petition,'' dated
November 5, 2024.
\14\ See Memorandum, ``Consultations with the Government of
Brazil,'' dated November 13, 2024.
\15\ See Memorandum, ``Consultations with the Government of
India,'' dated November 13, 2024.
\16\ The GOC submitted comments on the CVD petition from China.
See GOC's Letter, ``Comments on Countervailing Duty Petition,''
dated November 8, 2024.
---------------------------------------------------------------------------
Determination of Industry Support for the Petitions
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC apply the same statutory definition regarding the domestic like
product,\17\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\18\
---------------------------------------------------------------------------
\17\ See section 771(10) of the Act.
\18\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigations.\19\ Based on our analysis of the information
submitted on the record, we have determined that hard empty capsules,
as defined in the scope, constitute a single domestic like product, and
we have analyzed industry support in terms of that domestic like
product.\20\
---------------------------------------------------------------------------
\19\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Checklists, ``Countervailing Duty Investigation Initiation
Checklists: Hard Empty Capsules from Brazil, the People's Republic
of China, India, and the Socialist Republic of Vietnam,'' dated
concurrently with, and hereby adopted by, this notice (Country-
Specific CVD Initiation Checklists), at Attachment II, Analysis of
Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Hard Empty Capsules from Brazil, the People's
Republic of China, India, and the Socialist Republic of Vietnam
(Attachment II). These checklists are on file electronically via
ACCESS.
\20\ See Attachment II of the Country-Specific CVD Initiation
Checklists.
---------------------------------------------------------------------------
In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2023 and compared this
to the estimated total 2023 production of the domestic like product for
the entire industry.\21\ We relied on data provided by the petitioner
for purposes of measuring industry support.\22\
---------------------------------------------------------------------------
\21\ Id.
\22\ For further discussion, see Attachment II of the Country-
Specific CVD Initiation Checklists.
---------------------------------------------------------------------------
Our review of the data provided in the Petitions, the General
Issues Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petitions.\23\ First, the Petitions established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\24\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act
[[Page 91682]]
because the domestic producers (or workers) who support the Petitions
account for at least 25 percent of the total production of the domestic
like product.\25\ Finally, the domestic producers (or workers) have met
the statutory criteria for industry support under section
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers)
who support the Petitions account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the Petitions.\26\
Accordingly, Commerce determines that the Petitions were filed on
behalf of the domestic industry within the meaning of section 702(b)(1)
of the Act.\27\
---------------------------------------------------------------------------
\23\ For further discussion, see Attachment II of the Country-
Specific CVD Initiation Checklists.
\24\ Id.; see also section 702(c)(4)(D) of the Act.
\25\ See Attachment II of the Country-Specific CVD Initiation
Checklists.
\26\ Id.
\27\ Id.
---------------------------------------------------------------------------
Injury Test
Because Brazil, China, India, and Vietnam are ``Subsidies Agreement
Countries'' within the meaning of section 701(b) of the Act, section
701(a)(2) of the Act applies to these investigations. Accordingly, the
ITC must determine whether imports of the subject merchandise from
Brazil, China, India, and/or Vietnam materially injure, or threaten
material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports from China, India, and Vietnam exceed the
negligibility threshold provided for under section 771(24)(A) of the
Act.\28\ With respect to Brazil, while the allegedly subsidized imports
do not exceed the statutory requirements for negligibility,\29\ the
petitioner alleges and provides supporting evidence that: (1) there is
a reasonable indication that the data obtained in the ITC's
investigation will establish that imports exceed the negligibility
threshold; \30\ and (2) there is the potential that imports from Brazil
will imminently exceed the negligibility threshold and, therefore, are
not negligible for purposes of a threat determination.\31\ The
petitioner's arguments regarding the limitations of publicly available
import data and the collection of scope-specific import data in the
ITC's investigation are consistent with the SAA. Furthermore, the
petitioner's arguments regarding the potential for imports from Brazil
to imminently exceed the negligibility threshold are consistent with
the statutory criteria for ``negligibility in threat analysis'' under
section 771(24)(A)(iv) of the Act, which provides that imports shall
not be treated as negligible if there is a potential that subject
imports from a country will imminently exceed the statutory
requirements for negligibility.
---------------------------------------------------------------------------
\28\ For further information regarding negligibility and the
injury allegation, see Country-Specific CVD Initiation Checklists at
Attachment III, Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and Countervailing Duty
Petitions Covering Hard Empty Capsules from Brazil, the People's
Republic of China, India, and the Socialist Republic of Vietnam
(Attachment III).
\29\ Id.
\30\ Id.; see also Statement of Administrative Action
Accompanying the Uruguay Round Agreements Act, H.R. Doc 103-316,
Vol. 1 (1994) (SAA).
\31\ See Attachment III of the Country-Specific CVD Initiation
Checklists; see also section 771(24)(A)(iv) of the Act.
---------------------------------------------------------------------------
The petitioner contends that the industry's injured condition is
illustrated by the significant and increasing volume of subject
imports; reduced market share; underselling and price depression and/or
suppression; lost sales and revenues; and decline in the domestic
industry's production, U.S. shipments, net sales, and financial
performance.\32\ We assessed the allegations and supporting evidence
regarding material injury, threat of material injury, causation,
cumulation, as well as negligibility, and we have determined that these
allegations are properly supported by adequate evidence and meet the
statutory requirements for initiation.\33\
---------------------------------------------------------------------------
\32\ See Attachment III of the Country-Specific CVD Initiation
Checklists.
\33\ Id.
---------------------------------------------------------------------------
Initiation of CVD Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 702 of
the Act. Therefore, we are initiating CVD investigations to determine
whether imports of hard empty capsules from Brazil, China, India, and
Vietnam benefit from countervailable subsidies conferred by the GOB,
GOC, GOI, and GOV, respectively. In accordance with section 703(b)(1)
of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determinations no later than 65 days after the date of
these initiations.
Brazil
Based on our review of the Petitions, we find that there is
sufficient information to initiate a CVD investigation on 18 of the 18
programs alleged by the petitioner. For a full discussion of the basis
for our decision to initiate on each program, see the Brazil CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
China
Based on our review of the Petitions, we find that there is
sufficient information to initiate a CVD investigation on 18 of the 19
programs alleged by the petitioner. For a full discussion of the basis
for our decision to initiate on each program, see the China CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
India
Based on our review of the Petitions, we find that there is
sufficient information to initiate a CVD investigation on 22 of the 23
programs alleged by the petitioner. For a full discussion of the basis
for our decision to initiate on each program, see the India CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
Vietnam
Based on our review of the Petitions, we find that there is
sufficient information to initiate a CVD investigation on 26 of the 26
programs alleged by the petitioner. For a full discussion of the basis
for our decision to initiate on each program, see the Vietnam CVD
Initiation Checklist. A public version of the initiation checklist for
this investigation is available on ACCESS.
Respondent Selection
Brazil and Vietnam
In the Petitions, the petitioner identified two companies in Brazil
(i.e., ACG do Brasil S.A. and Genix Industria Farmaceutica LTDA
(Qualicaps Brazil)) and two companies in Vietnam (i.e., Cuu Long
Pharmaceutical Joint Stock Company (DCL) and Suheung Vietnam Co., Ltd.)
as producers/exporters of hard empty capsules and provided independent
third-party information as support.\34\ We currently know of no
[[Page 91683]]
additional producers/exporters of hard empty capsules from Brazil and
Vietnam. Accordingly, Commerce intends to individually examine all
known producers/exporters in the investigations for Brazil and Vietnam
(i.e., the companies cited above). We invite interested parties to
comment on this issue. Such comments may include factual information
within the meaning of 19 CFR 351.102(b)(21). Parties wishing to comment
must do so within three business days of the publication of this notice
in the Federal Register. Comments must be filed electronically using
ACCESS. An electronically filed document must be received successfully
in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline.
Because we intend to examine all known producers/exporters in Brazil
and Vietnam, if no comments are received, or if comments received
further support the existence of only these producers/exporters in
Brazil and Vietnam, respectively, we do not intend to conduct
respondent selection and will proceed to issuing the initial CVD
questionnaires to the companies identified. However, if comments are
received which create a need for a respondent selection process, we
intend to finalize our decision regarding respondent selection for
Brazil and Vietnam within 20 days of publication of this notice.
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\34\ See Petitions at Volume I (page 30 and Exhibits I-46, I-57,
and I-60); see also General Issues Supplement at 1-2 and Exhibit I-
46 (Revised).
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China and India
In the Petitions, the petitioner identified 50 companies in China
and 14 companies in India as producers/exporters of hard empty
capsules.\35\ Commerce intends to follow its standard practice in CVD
investigations and calculate company-specific subsidy rates in this
investigation. Following standard practice in CVD investigations, in
the event Commerce determines that the number of exporters or producers
is large such that Commerce cannot individually examine each company
based on its resources, Commerce intends to select mandatory
respondents based on U.S. Customs and Border Protection (CBP) entry
data for U.S. imports under the appropriate Harmonized Tariff Schedule
of the United States (HTSUS) subheading(s) listed in the ``Scope of the
Investigations,'' in the appendix.
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\35\ See Petitions at Volume I (page 30 and Exhibit I-46); see
also General Issues Supplement at 1 and Exhibit I-46 (Revised).
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On November 7 and 8, 2024, Commerce released CBP data on imports of
hard empty capsules from China and India under administrative
protective order (APO) to all parties with access to information
protected by APO and indicated that interested parties wishing to
comment on CBP data and/or respondent selection must do so within three
business days of the publication date of the notice of initiation of
these investigations.\36\ Comments must be filed electronically using
ACCESS. An electronically filed document must be received successfully
in its entirety via ACCESS by 5:00 p.m. ET on the specified deadline.
Commerce will not accept rebuttal comments regarding the CBP data or
respondent selection.
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\36\ See Country-Specific Memoranda, ``Release of U.S. Customs
and Border Protection Entry Data,'' dated November 7 and 8, 2024.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders.
Distribution of Copies of the Petitions
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petitions has been
provided to the GOB, GOC, GOI, and GOV via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petitions to each exporter named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of hard empty capsules from Brazil, China,
India, and/or Vietnam are materially injuring, or threatening material
injury to, a U.S. industry.\37\ A negative ITC determination for any
country will result in the investigation being terminated with respect
to that country.\38\ Otherwise, these CVD investigations will proceed
according to statutory and regulatory time limits.
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\37\ See section 703(a)(1) of the Act.
\38\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors of production under 19 CFR 351.408(c) or
to measure the adequacy of remuneration under 19 CFR 351.511(a)(2);
(iv) evidence placed on the record by Commerce; and (v) evidence other
than factual information described in (i)-(iv). Section 351.301(b) of
Commerce's regulations requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted \39\ and, if the information is
submitted to rebut, clarify, or correct factual information already on
the record, to provide an explanation identifying the information
already on the record that the factual information seeks to rebut,
clarify, or correct.\40\ Time limits for the submission of factual
information are addressed in 19 CFR 351.301, which provides specific
time limits based on the type of factual information being submitted.
Interested parties should review the regulations prior to submitting
factual information in these investigations.
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\39\ See 19 CFR 351.301(b).
\40\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301, or as otherwise specified by
Commerce.\41\ For submissions that are due from multiple parties
simultaneously, an extension request will be considered untimely if it
is filed after 10:00 a.m. ET on the due date. Under certain
circumstances, Commerce may elect to specify a different time limit by
which extension requests will be considered untimely for submissions
which are due from multiple parties simultaneously. In such a case, we
will inform parties in a letter or memorandum of the deadline
(including a specified time) by which extension requests must be filed
to be considered timely. An extension request must be made in a
separate, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
[[Page 91684]]
submitting factual information in these investigations.\42\
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\41\ See 19 CFR 351.302.
\42\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\43\
Parties must use the certification formats provided in 19 CFR
351.303(g).\44\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\43\ See section 782(b) of the Act.
\44\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in these investigations should ensure that they meet the requirements
of 19 CFR 351.103(d) (e.g., by filing the required letters of
appearance). Note that Commerce has amended certain of its requirements
pertaining to the service of documents in 19 CFR 351.303(f).\45\
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\45\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: November 13, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise subject to the scope of these investigations 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 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.
[FR Doc. 2024-27008 Filed 11-19-24; 8:45 am]
BILLING CODE 3510-DS-P
