translated from Spanish: Chile confirms dumping in China steel balls and fixes 5.6% guard rate

The government finally decided to apply a tax of 5.6% to The importation of grinding balls for mining from China, thus accepting the recommendation of the National Commission responsible for investigating the existence of distortions in the price of imported goods that asked the issue that validated in this way that exists Chinese dumping in this area of the market.
The Chilean government instance had set up a provisional measure of protection for the National Steel ball industry in January, which taxed 9% on imports of this product from the Asian giant, and opened an investigation of the trade. As it was a transitory measure, after a series of public hearings where they listened to the actors of the sector, the public entity was definitively played by a rate of 5.6%. The recommendation was passed to the Ministry of Finance and the portfolio was put in the hands of the President of the Republic who finally had the last word in this case. The government decision was published on Thursday in the official journal and will be governed for one year, according to the resolution.
The tariff measure was supported by companies such as Moly-Cop, producer of grinding balls in national territory, and CAP-Main steel producer in the country, supported by workers ‘ unions and parliamentarians in the Biobío region.
His argument for defending the rate is that Chinese-origin balls are flooding the Chilean market, at low-cost prices, but subsidized by the Chinese government.
“The Commission’s decision confirms that Chinese products are coming with dumping, causing serious damage to the domestic industry. We highly appreciate the technical work of the Commission which decided to initiate the investigation and finally determined that there are distortions that need to be corrected, “they said from Moly-Cop.
According to the counter Gustavo Alcázar, general manager of Compañía, the decision is “a tremendous sign, because the damage exists and Chinese dumping is undeniable.”
It also stressed that the Commission’s decision also revealed that this instance “did not accept external pressures. We very much appreciate the technical work done by the Commission, which faces all kinds of pressures, including the Chinese government that has been sent by the representative, indicating little less that trade relations would be finished. ”
The words of Alcazar point to the unpublished claim of the government of Beijing, which in the midst of the process warned that a surcharge “could harm the happy present and promising future of our bilateral economic-commercial cooperation”. Contrary to the application of a rate, the company Elecmetal, a firm of the clear group that produces these mining inputs but in Chinese territory, supported in its position by the large mining companies of the country, was also manifested.
An insufficient percentage
Those who promote the surcharge point out that the entry of subsidized Chinese products not only affects steel producers like CAP, which delivers the bars with which the national producers draw the balls, but also a whole chain of suppliers and Which puts the Biobío region at serious risk, given the social effects that it entails
For Hector Medina Alegría, union president N ° 1 Huachipato – CAP, the key to this resolution is that “the Commission recognizes that Chinese steelworkers are dumping and that is very important because that is what we have always said. The Chinese are dumping and that was absolutely proven. ”
However, the leader warned the counter that “the rate of 5.6% determined is insufficient to reduce the correction to the market, because we believe it should be 18%. In addition, the amount of time that the surcharge applies, for one year, is also insufficient. ”
The resolution in detail of the price Committee is not yet available, so the background that the instance considered to determine the rate of 5.6% and not another percentage is not yet in sight. Therefore, in Moly-Cop they are waiting for this data regarding the percentage of correction in order to analyze “why it was less than what we expected,” they pointed out.
In this scenario, despite the application of the 5.6% surcharge, industry workers announced that they will remain on alert. “We will use all the instances we have left to continue to insist and if we have to make a new research presentation in the Commission, we will have to do it. The Commission did not revise some things that it should have reviewed, so we have the right to make them see them, “said the president of the Union’s president N ° 1 Huachipato – CAP.
The resolution
The resolution published on Thursday in the official journal states that “Establécese as a definitive anti-dumping duty, an ad valorem tariff surcharge of 5.6% to imports of forged steel balls for grinding in diameter of less than 4 inches, Originating in the People’s Republic of China, classified in the tariff code 7326.1110 of the Chilean harmonized system, excluding imports from the exporting company Goldpro New materials Co. Ltd “, designates the resolution sent.
The text adds that “apply the definitive anti-dumping duty established by this Decree, in accordance with the provisions of article 64 of Supreme Decree No. 1,314, of 2013, of the Ministry of Finance, which shall govern for a period of one year from its Publication in the Official journal “.
 

Original source in Spanish