Attacks with the purpose or effect of restraining or entangling to target (or otherwise hindering the target's physical actions) count as physical damage, but do not do damage as such. Instead, the Remainder becomes a standing penalty to any action that would go against the direction of the restraint (ie movement).
This includes nets, giant spider webs, animated vines, or just old-fashioned wrestling. ST is often a factor in breaking free, but not a factor in determining the original entanglement penalty.
The target does not lose dice. The penalty disappears if and when the restraint is removed or overcome.