Philip Morris International and Altria said on Monday they had entered into contract manufacturing arrangements with each other as Altria seeks to expand its cigarette imports and exports and benefit from a U.S. tax rebate.
The rebate, known as the “double duty drawback”, allows U.S. tobacco companies exporting products abroad to recover federal excise taxes previously paid on products sold domestically. The arrangement can provide a significant boost to companies’ profits.
Altria, which manufactures Marlboro cigarettes in the United States but does not sell tobacco products overseas, has been expanding partnerships with foreign manufacturers to increase its import and export activities.
Philip Morris International manufactures Marlboro cigarettes for markets outside the United States and does not sell tobacco products in the U.S. The company said its agreement with Altria would not change that strategy and that it has no plans to begin selling cigarettes in the American market.
Altria said the new arrangement would improve efficiency and generate economic benefits. The first shipments are expected to begin in 2027, while both companies said the agreements would not affect their 2026 financial performance.
Altria said in January that similar partnerships with other manufacturers were expected to boost its profits during the second half of 2026.
Altria was formerly the parent company of Philip Morris International before the international tobacco business was spun off in 2008.
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