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, 91684-91690 [2024-27009]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Notices]
[Pages 91684-91690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27009]


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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

AGENCY: 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 (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\
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated October 24, 2024 
(Petitions).
    \2\ Id.
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    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\
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    \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.
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    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.

[[Page 91685]]

    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 for the 
initiation of the requested LTFV investigations.\5\
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    \5\ See section on ``Determination of Industry Support for the 
Petitions,'' infra.
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Periods of Investigation

    Because the Petitions were filed on October 24, 2024, pursuant to 
19 CFR 351.204(b)(1), the period of investigation (POI) for the Brazil 
and India LTFV investigations is October 1, 2023, through September 30, 
2024. Because China and Vietnam are non-market economy (NME) countries, 
pursuant to 19 CFR 351.204(b)(1), the POI for the China and Vietnam 
LTFV investigations is April 1, 2024, through September 30, 2024.

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.\6\ On November 6, 2024, the petitioner provided clarifications 
and revised the scope.\7\ The description of merchandise covered by 
these investigations, as described in the appendix to this notice, 
reflects these clarifications.
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    \6\ See November 5, 2024, Memorandum.
    \7\ See Scope Supplement at 1-8 and Exhibit I-92.
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    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).\8\ Commerce will consider all scope 
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,\9\ all such factual information should be limited to 
public information. 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 
factual information, and should also be limited to public information, 
must be filed by 5:00 p.m. ET on December 13, 2024, which is 10 
calendar days from the initial comment deadline.
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    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR 
351.312.
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
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    Commerce requests that any factual information that parties 
consider relevant to the scope of these investigations be submitted 
during that 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 
LTFV 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.\10\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \10\ 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.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of hard empty capsules to 
be reported in response to Commerce's AD questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant factors of 
production (FOP) or cost of production (COP) accurately, as well as to 
develop appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) general product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe hard empty capsules, it may be that only a select few 
product characteristics take into account commercially meaningful 
physical characteristics. In addition, interested parties may comment 
on the order in which the physical characteristics should be used in 
matching products. Generally, Commerce attempts to list the most 
important physical characteristics first and the least important 
characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on December 3, 
2024, which is 20 calendar days from the signature date of this notice. 
Any rebuttal comments must be filed by 5:00 p.m. ET on December 13, 
2024, which is 10 calendar days from the initial comment deadline. All 
comments and submissions to Commerce must be filed electronically using 
ACCESS, as explained above, on the record of each of the LTFV 
investigations.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(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 732(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

[[Page 91686]]

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,\11\ 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.\12\
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    \11\ See section 771(10) of the Act.
    \12\ 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)).
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    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.\13\ 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.\14\
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    \13\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Checklists, ``Antidumping 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 AD 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.
    \14\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
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    In determining whether the petitioner has standing under section 
732(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.\15\ We relied on data provided by the petitioner 
for purposes of measuring industry support.\16\
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    \15\ Id.
    \16\ For further discussion, see Attachment II of the Country-
Specific AD Initiation Checklists.
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    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.\17\ 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).\18\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act 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.\19\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(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.\20\ Accordingly, Commerce determines that the Petitions 
were filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\21\
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    \17\ Id.
    \18\ Id.; see also section 732(c)(4)(D) of the Act.
    \19\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \20\ Id.
    \21\ Id.
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    Allegations and Evidence of Material Injury and Causation
    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. 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.\22\ With 
respect to Brazil, while the allegedly dumped imports do not exceed the 
statutory requirements for negligibility,\23\ 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; \24\ 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.\25\ 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.
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    \22\ For further information regarding negligibility and the 
injury allegation, see Country-Specific AD 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).
    \23\ Id.
    \24\ Id.; see also Statement of Administrative Action 
Accompanying the Uruguay Round Agreements Act, H.R. Doc 103-316, 
Vol. 1 (1994) (SAA).
    \25\ See Attachment III of the Country-Specific AD Initiation 
Checklists; see also section 771(24)(A)(iv) of the Act.
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    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.\26\ 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.\27\
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    \26\ Id.
    \27\ Id.

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[[Page 91687]]

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate LTFV investigations 
of imports of hard empty capsules from Brazil, China, India, and 
Vietnam. The sources of data for the deductions and adjustments 
relating to U.S. price and normal value (NV) are discussed in greater 
detail in the Country-Specific AD Initiation Checklists.

U.S. Price

    For Brazil, China, India, and Vietnam, the petitioner based export 
price (EP) on POI average unit values derived from official U.S. import 
statistics for imports of hard empty capsules produced in and exported 
from each country.\28\ For each country, the petitioner made certain 
adjustments to U.S. price to calculate a net ex-factory U.S. price, 
where applicable.\29\
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    \28\ See Country-Specific AD Initiation Checklists.
    \29\ Id.
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Normal Value \30\
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    \30\ In accordance with section 773(b)(2) of the Act, for the 
Brazil and India investigations, Commerce will request information 
necessary to calculate the constructed value (CV) and COP to 
determine whether there are reasonable grounds to believe or suspect 
that sales of the foreign like product have been made at prices that 
represent less than the COP of the product.
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    For Brazil and India, the petitioner stated that it was unable to 
obtain home market or third country pricing information for hard empty 
capsules to use as a basis for NV.\31\ Therefore, for Brazil and India, 
the petitioner calculated NV based on CV.\32\ For further discussion of 
CV for Brazil and India, see the section ``Normal Value Based on 
Constructed Value,'' below.
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    \31\ See Country-Specific AD Initiation Checklists.
    \32\ Id.
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    Commerce considers China and Vietnam to be NME countries.\33\ In 
accordance with section 771(18)(C)(i) of the Act, any determination 
that a foreign country is an NME country shall remain in effect until 
revoked by Commerce. Therefore, we continue to treat China and Vietnam 
as NME countries for purposes of the initiation of the China and 
Vietnam LTFV investigations. Accordingly, we base NV on FOPs valued in 
a surrogate market economy country in accordance with section 773(c) of 
the Act.
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    \33\ See, e.g., Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Preliminary 
Affirmative Determination of Critical Circumstances, 88 FR 15372 
(March 13, 2023), and accompanying Preliminary Decision Memorandum 
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less-Than-Fair Value and Final Affirmative Determination 
of Critical Circumstances, 88 FR 34485 (May 30, 2023); see also, 
e.g., Raw Honey from the Socialist Republic of Vietnam: Final 
Results of Antidumping Duty Changed Circumstances Review, 89 FR 
64411 (August 7, 2024), and accompanying NME Analysis Memorandum at 
5.
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    The petitioner claims that the Republic of T[uuml]rkiye 
(T[uuml]rkiye) is an appropriate surrogate country for China because it 
is a market economy that is at a level of economic development 
comparable to that of China and is a significant producer of comparable 
merchandise.\34\ The petitioner provided publicly available information 
from T[uuml]rkiye to value all FOPs.\35\ Based on the information 
provided by the petitioner, we believe it is appropriate to use 
T[uuml]rkiye as a surrogate country for China to value all FOPs for 
initiation purposes.
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    \34\ See China AD Initiation Checklist.
    \35\ Id.
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    The petitioner claims that Indonesia is an appropriate surrogate 
country for Vietnam because it is a market economy that is at a level 
of economic development comparable to that of Vietnam and is a 
significant producer of comparable merchandise.\36\ The petitioner 
provided publicly available information from Indonesia to value all 
FOPs.\37\ Based on the information provided by the petitioner, we 
believe it is appropriate to use Indonesia as a surrogate country for 
Vietnam to value all FOPs for initiation purposes.
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    \36\ See Vietnam AD Initiation Checklist.
    \37\ Id.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determinations.

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese and Vietnamese producers/exporters was not reasonably 
available, the petitioner used its own production experience and 
product-specific consumption rates as a surrogate to value Chinese and 
Vietnamese manufacturers' FOPs.\38\ Additionally, the petitioner 
calculated factory overhead, selling, general, and administrative 
(SG&A) expenses, and profit based on the experience of Turkish and 
Indonesian producers of comparable merchandise, respectively.\39\
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    \38\ See Country-Specific AD Initiation Checklists.
    \39\ Id.
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Normal Value Based on Constructed Value

    As noted above for Brazil and India, the petitioner stated that it 
was unable to obtain home market or third-country prices for hard empty 
capsules to use as a basis for NV. Therefore, for Brazil and India, the 
petitioner calculated NV based on CV.\40\
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    \40\ Id.
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    Pursuant to section 773(e) of the Act, the petitioner calculated CV 
as the sum of the cost of manufacturing, SG&A expenses, financial 
expenses, and profit.\41\ For Brazil and India, in calculating the cost 
of manufacturing, the petitioner relied on its own production 
experience and product-specific consumption rates, valued using 
publicly available information applicable to the respective countries, 
where applicable.\42\ For Brazil and India, in calculating SG&A 
expenses, financial expenses, and profit ratios, the petitioner relied 
on the fiscal year 2023 financial statements of producers of comparable 
merchandise domiciled in the respective countries.\43\
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    \41\ Id.
    \42\ Id.
    \43\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe 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 LTFV. Based on comparisons of EP to NV in accordance with sections 
772 and 773 of the Act, the estimated dumping margins for hard empty 
capsules for each of the countries covered by this initiation are as 
follows: (1) Brazil--78.52 to 99.11 percent; (2) China--128.01 to 
158.04 percent; (3) India--54.81 to 82.95 percent; (4) Vietnam--63.53 
to 86.04 percent.\44\
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    \44\ Id.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating LTFV investigations to determine 
whether imports of hard empty capsules from Brazil, China, India, and 
Vietnam are being, or are likely to be, sold in the United States at 
LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no

[[Page 91688]]

later than 140 days after the date of these initiations.

Respondent Selection

Brazil

    In the Petitions, the petitioner identified two companies in Brazil 
(i.e., ACG do Brasil S.A. and Genix Industria Farmaceutica LTDA 
(Qualicaps Brazil)) as producers/exporters of hard empty capsules and 
provided independent third-party information as support.\45\ We 
currently know of no additional producers/exporters of hard empty 
capsules from Brazil. Accordingly, Commerce intends to individually 
examine all known producers/exporters in the investigation from Brazil 
(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, 
if no comments are received, or if comments received further support 
the existence of only these two producers/exporters, we do not intend 
to conduct respondent selection and will proceed to issuing the initial 
AD 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 within 20 days of publication of this notice.
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    \45\ See Petitions at Volume I (page 30 and Exhibits I-46 and I-
57); see also General Issues Supplement at 1-2 and Exhibit I-46 
(Revised).
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India

    In the Petitions, the petitioner identified 14 companies in India 
as producers/exporters of hard empty capsules.\46\ Following standard 
practice in LTFV investigations involving market economy countries, in 
the event Commerce determines that the number of companies is large, 
and it cannot individually examine each company based upon Commerce's 
resources, where appropriate, Commerce intends to select mandatory 
respondents based on U.S. Customs and Border Protection (CBP) data for 
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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    \46\ See Petitions at Volume I (pages 10-11 and Exhibit I-8); 
see also General Issues Supplement at 1-3 and Exhibit I-S1.
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    On November 7, 2024, Commerce released CBP data on imports of hard 
empty capsules from 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.\47\ 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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    \47\ See Country-Specific Memorandum, ``Release of U.S. Customs 
and Border Protection Entry Data,'' dated November 7, 2024.
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China and Vietnam

    In the Petitions, the petitioner identified 50 companies in China 
and two companies in Vietnam as producers and/or exporters of hard 
empty capsules.\48\ Our standard practice for respondent selection in 
AD investigations involving NME countries is to select respondents 
based on quantity and value (Q&V) questionnaires in cases where 
Commerce has determined that the number of companies is large, and it 
cannot individually examine each company based upon its resources. 
Therefore, considering the number of producers and/or exporters 
identified in the Petitions, Commerce will solicit Q&V information that 
can serve as a basis for selecting exporters for individual examination 
in the event that Commerce determines that the number is large and 
decides to limit the number of respondents individually examined 
pursuant to section 777A(c)(2) of the Act. Because there are 50 Chinese 
producers and/or exporters identified in the Petitions, Commerce has 
determined that it will issue Q&V questionnaires to the largest 
producers and/or exporters in China that are identified in the CBP POI 
entry data for which there is complete address information on the 
record.\49\ For Vietnam, because there are two producers and/or 
exporters identified in the Petitions, Commerce will issue a Q&V 
questionnaire to each potential respondent in Vietnam for which there 
is complete address information on the record.
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    \48\ See Petitions at Volume I (page 30 and Exhibit I-46); see 
also General Issues Supplement at 1 and Exhibit I-46 (Revised).
    \49\ See Memorandum, ``Release of U.S. Customs and Border 
Protection Entry Data,'' dated November 7, 2024.
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    Commerce will post the Q&V questionnaires along with filing 
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of hard empty capsules from 
China and Vietnam that do not receive Q&V questionnaires may still 
submit a response to the Q&V questionnaire and can obtain a copy of the 
Q&V questionnaire from Commerce's website. Responses to the Q&V 
questionnaire must be submitted by the relevant Chinese and Vietnamese 
producers/exporters no later than 5:00 p.m. ET on November 27, 2024, 
which is two weeks from the signature date of this notice. All Q&V 
questionnaire responses must be filed electronically via ACCESS. An 
electronically filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted 
above.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). As stated above, instructions 
for filing such applications may be found on Commerce's website at 
https://www.trade.gov/administrative-protective-orders.

Separate Rates

    In order to obtain separate rate status in an NME investigation, 
exporters and producers must submit a separate rate application. The 
specific requirements for submitting a separate rate application in an 
NME investigation are outlined in detail in the application itself, 
which is available on Commerce's website at https://access.trade.gov/Resources/nme/nme-sep-rate.html. The separate rate application will be 
due 30 days after publication of this initiation notice. Exporters and 
producers must file a timely separate rate application if they want to 
be considered for individual examination. Exporters and producers who 
submit a separate rate application and have been selected as mandatory 
respondents will be eligible for consideration for separate rate status 
only if they respond to all parts of Commerce's AD questionnaire as 
mandatory respondents. Commerce requires that companies from China and 
Vietnam submit a response both to the Q&V questionnaire and to the 
separate rate application by the respective deadlines to receive 
consideration for separate rate status. Companies not filing a timely 
Q&V questionnaire response will not receive separate rate 
consideration.

[[Page 91689]]

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the {weighted 
average{time}  of the individually calculated rates. This practice 
is referred to as the application of ``combination rates'' because 
such rates apply to specific combinations of exporters and one or 
more producers. The cash-deposit rate assigned to an exporter will 
apply only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\50\
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    \50\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigation involving NME Countries,'' (April 
5, 2005) at 6 (emphasis added), available on Commerce's website at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of Brazil, China, India, and Vietnam 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 our initiation, as required by 
section 732(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.\51\ A negative ITC determination for any 
country will result in the investigation being terminated with respect 
to that country.\52\ Otherwise, these LTFV investigations will proceed 
according to statutory and regulatory time limits.
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    \51\ See section 733(a) of the Act.
    \52\ 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 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 \53\ 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.\54\ 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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    \53\ See 19 CFR 351.301(b).
    \54\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested party submits a PMS allegation pursuant to section 773(e) of 
the Act (i.e., a cost-based PMS allegation), the submission must be 
filed in accordance with the requirements of 19 CFR 351.416(b), and 
Commerce will respond to such a submission consistent with 19 CFR 
351.301(c)(2)(v). If Commerce finds that a cost-based PMS exists under 
section 773(e) of the Act, then it will modify its dumping calculations 
appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), 
sets a deadline for the submission of cost-based PMS allegations and 
supporting factual information. However, in order to administer section 
773(e) of the Act, Commerce must receive PMS allegations and supporting 
factual information with enough time to consider the submission. Thus, 
should an interested party wish to submit a cost-based PMS allegation 
and supporting new factual information pursuant to section 773(e) of 
the Act, it must do so no later than 20 days after submission of a 
respondent's initial section D questionnaire response.
    We note that a PMS allegation filed pursuant to sections 
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a 
respondent's initial section B questionnaire response, in accordance 
with 19 CFR 351.301(c)(2)(i) and 19 CFR 351.404(c)(2).

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.\55\ 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 
submitting factual information in these investigations.\56\
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    \55\ 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.
    \56\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.

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[[Page 91690]]

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\57\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\58\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \57\ See section 782(b) of the Act.
    \58\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional 
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/.
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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 letter of 
appearance). Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\59\
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    \59\ 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 732(c)(2) 
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 hard empty capsules 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. 2024-27009 Filed 11-19-24; 8:45 am]
BILLING CODE 3510-DS-P