The European Commission is proposing to place multi-year duties on biodiesel shipped from the U.S. to offset a subsidy the U.S. government gives to biodiesel producers, a European official said Tuesday.

The proposal will extend temporary duties the European Union imposed in March on U.S. biodiesel. Final duties imposed by the E.U. typically last for five years.

The commission is proposing changes to the biodiesel duties: U.S. agriculture giant Archer Daniels Midland (ADM) will face a duty of EUR359 a metric ton of biodiesel, up from the temporary duty announced in March of EUR261/ton, the European official said.

ADM's rival Cargill will have to pay EUR213.80/ton, down from the duty announced in March of EUR275/ton. Imperium Renewables will have to pay EUR293/ton.

Green Earth Fuels will pay EUR284/ton, and World Energy Alternatives EUR294/ton, according to the proposal. Fifty-three companies that cooperated with the E.U.'s investigation will have to pay EUR335/ton, including Louis Dreyfus Agricultural Industries, Vitol Inc., and U.S. Biofuels Inc.

Peter Cremer North America LP and all other companies will have to pay EUR409/ton, down slightly from the temporary duty of EUR419/ton.

The duties must be approved by E.U. governments at the European Council.

-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@dowjones.com