Feifan Chile and Magotteaux (a subsidiary of Sigdo Koppers), took legal action against the Comisión Antidistorsiones (the competition watchdog) upon the imposition of tariff surcharges on Chinese steel.

Feifan Chile and Magotteaux, companies linked to the steel industry, launched a legal offensive against the regulatory body's decision to apply tariff surcharges on steel imported from China.

The companies oppose provisional anti-dumping duties of 24.9% for bars and 33.5% for imports of steel balls.

Following the Commission's resolution, Feifan and Magotteaux each presented appeals for protection before the Court of Appeals of Santiago.

Feifan Chile, which imports steel balls from China, argues that the tariff surcharge is “illegal and arbitrarily imposed,” which leaves it “completely out of the market” and violates its constitutional guarantees.

According to Feifan, the investigation was carried out against the rule of law, discriminating Chinese producers and importers.

Feifan also criticized the government, alleging that the majority of the Commission members have acted in a partial manner, favoring the national steel industry.

“EXTREMELY PARTIAL”

For his part, Magotteaux described the situation as an “extremely partial procedure,” arguing that the decision was adopted to the extent requested by a particular company.

Magotteaux also criticized the corruption of antidumping institutions, alleging that it is used “to protect a particular company” instead of “correcting possible distortions in international trade.”

Magotteaux group has been in Chile since 1992, locally producing, importing and marketing forged steel balls for grinding. In 2019, it partnered with Chinese private company Jiangyn Xingcheng Special Steel Works Co. Ltd, forming a joint venture in China.

Santiago Ried, a partner at Dentons, is Magotteaux's legal representative, while Pedro Rencoret, partner at Pellegrini & Rencoret, advises Feifan.