US lawmakers seek a crackdown on solar imports they say dodge duties

July 16 (Reuters) - A bipartisan group of U.S. lawmakers on Thursday urged the Trump administration to crack down on imports of what they say are partially finished solar cells that are being used to

July 16 (Reuters) - A bipartisan group of U.S. lawmakers on Thursday urged the Trump administration to crack down on imports of what they say are partially finished solar cells that are being used to evade trade duties and improperly claim federal manufacturing tax credits, according to a letter seen by Reuters. The debate over so-called blue wafers is part of a long-running U.S. effort to curb what domestic solar panel makers say are attempts to avoid tariffs.

Chinese companies account for about 80% of global solar supply, and many have shifted manufacturing to other countries to serve the U.S. market. The letter, signed by Republican Representatives Mike Bost and Pat Harrigan and Democratic Representatives Ro Khanna and Marcy Kaptur, asks Customs and Border Protection and the Internal Revenue Service to take action against importers of blue wafers, thin slices of ultra-pure silicon that have undergone key processing steps that allow them to generate electricity. The lawmakers said some companies are importing the products to avoid U.S. duties on solar cells, then completing final processing in the United States and claiming federal tax credits intended to support domestic solar manufacturing.

"This duty evasion and tax fraud is harming U.S. energy manufacturers and placing them at a clear competitive disadvantage," the letter said. The United States has sought to limit imports of cheap solar cells produced by Chinese companies through tariffs and tax policies meant to support domestic producers. Solar cells made in China and eight other Asian countries are subject to anti-dumping and countervailing duties.

The Solar Energy Manufacturers for America Coalition, whose members include First Solar and Hanwha's Qcells, praised the letter. "SEMA Coalition members have invested billions of dollars and created thousands of high-quality American manufacturing jobs to build a domestic solar cell industry," Rob Gardner, vice president of congressional and regulatory affairs for the SEMA Coalition, said in a statement. (Reporting by Nichola Groom; Editing by Lincoln Feast.)