Israeli Customs Costs QSFP-DD Optical Module 400G

QSFP-DD 400G modules cost between $1,400 and $130,000 depending on type, with Israeli import duties and VAT adding approximately 17–20% to the landed cost.

QSFP-DD 400G Module Pricing

The cost of 400G QSFP-DD optical modules varies widely based on type and vendor:

• SR8 (short-reach, in-rack connections): $1,400–$1,800 from reputable third-party vendors .
• DR4 and FR4 (medium reach, data center rows or campus links): Prices are competitive among third-party suppliers, generally higher than SR8 but significantly lower than long-haul modules .
• LR4, ZR, ZR+ (long-haul, DCI applications): OEM prices can exceed $10,000 for LR4 and $130,000 for ZR+ modules . These prices reflect the base purchase cost before shipping, customs, and VAT.

Israeli Import Considerations

When importing QSFP-DD modules into Israel, the following costs typically apply:

1. Customs Duty: Optical transceivers are generally classified under HS code 8517.62 (electrical apparatus for line telephony or data transmission). Israel applies customs duties ranging from 0% to 12%, but most high-tech optical modules are often duty-free under trade agreements or exemptions for IT equipment.
2. Value Added Tax (VAT): Israel imposes a 17% VAT on the total landed cost, which includes the product price, shipping, and any applicable customs duty.
3. Additional Fees: Handling, brokerage, and shipping insurance may add 2–5% to the total cost.

Example Calculation

For a 400G SR8 module priced at $1,500:

• Customs duty: $0 (assuming duty-free)
• Shipping & insurance: ~$50
• VAT (17% on $1,550): ~$264 Total landed cost ≈ $1,814 per module. For a ZR+ module priced at $130,000:
• Customs duty: $0–$0 (duty-free assumption)
• Shipping & insurance: ~$500–$1,000
• VAT (17% on $130,500): ~$22,185 Total landed cost ≈ $152,685 per module.

Recommendations

• Verify HS code and duty exemptions with the Israeli Tax Authority or a licensed customs broker.
• Consider third-party vendors for SR8, DR4, and FR4 modules to reduce procurement costs.
• Factor in VAT and shipping when budgeting for large-scale deployments, as these can significantly impact total cost.
• Volume discounts may be available for bulk purchases, which can offset customs and VAT expenses . By combining module selection, vendor choice, and accurate customs calculations, organizations can optimize the total cost of deploying 400G QSFP-DD optical modules in Israel.