Vietnamese exports of hard empty capsules could face US anti-dumping and countervailing duties from early 2026 after the US Department of Commerce (DOC) issued its final determinations in a trade remedy investigation, said the Trade Remedies Authority of Viet Nam (TRAV).

Under its decision dated December 19, the DOC concluded that hard capsules imported from Viet Nam were sold at dumped prices and benefited from subsidies. The products subject to investigation fall under HS codes 9602.00.1040 and 9602.00.5010.

The DOC set a final countervailing duty rate of 2.45% and a final anti-dumping margin of 46.24%, after adjusting for export subsidies. As Viet Nam had only one mandatory respondent in the case, the rates apply to all Vietnamese exporters.

The case was initiated in November 2024 at the request of US manufacturer Lonza Greenwood LLC, which alleged that Vietnamese producers were benefiting from subsidies and selling products at dumped prices. The petitioner cited US import data showing shipments from Viet Nam worth about US$26 million in 2023, accounting for roughly 12% of total US imports of the product.

The United States also conducted parallel anti-dumping and countervailing investigations into similar products imported from Brazil, China and India. The DOC’s findings show Viet Nam’s dumping margin was higher than those set for China and India but lower than Brazil’s, while Viet Nam recorded the lowest subsidy margin among the countries investigated.

The US International Trade Commission is still assessing whether the imports caused material injury to the US domestic industry. A final injury determination is expected soon. If affirmative, a formal duty order could be issued as early as February 2026.

Source: VOV