UPDATE 1-EU may extend duties on U.S. biodiesel imports

* Duties need ministerial approval, would last up to 5 years

* National trade officials to discuss duties on Thursday

* Some duties increased from temporary tariffs in March

(Adds details, background)

By Darren Ennis

BRUSSELS, May 27 (Reuters) - The European Commission will call on Thursday for an extension of antidumping and anti-subsidy duties on imports of biodiesel from the United States by up to five years, the proposal seen by Reuters showed.

The European Union's executive arm -- which oversees trade policy for the 27-nation bloc -- will seek the approval of so-called "definitive" or permanent tariffs of up to five years by member states at a meeting of the EU's antidumping committee.

Once approved by the committee, comprised of trade experts, the decision must be endorsed next month by EU ministers.

Sources familiar with the preparations for Thursday's meeting said the duties would most likely receive the green light from the national trade officials, paving the way for quick approval by EU governments.

"The evidence is quite overwhelming and no country has indicated it will contest the proposal so far," a source told Reuters.

The EU in March imposed temporary duties on the imports following a probe prompted by a complaint from EU producers of biodiesel -- the main biofuel produced in Europe -- that they were being hammered by U.S. subsidies. [ID:nNLC572079]

After further investigation by the Commission, some companies will have to pay more than the initial duties. Those that cooperated with Brussels would have some tariffs reduced.

Under the proposal, U.S. agricultural processor and ethanol producer Archer Daniels Midland (ADM.N) would face an additional duty of 359 euros ($500) per metric tonne of biodiesel exported to the EU, up from the temporary duty of 261 euros per tonne.

Cargill [CARG.UL] would have to pay 213.80 euros per tonne, down from 275 euros per tonne announced in March.

Over 50 companies that cooperated with the probe would face a tariff of 335 euros per tonne. All others would pay 409 euros per tonne, down from the temporary duty of 419 euros per tonne. (For a related factbox, click on [ID:nLR275681]) (For an analysis, click on [ID:nLB7257301]) (Editing by Dale Hudson)