noun, noun which may take the genitive case particle 'no'
exemption; exclusion from application
Used in legal, regulatory, or administrative contexts to indicate that a rule, law, or standard does not apply to a particular case or entity.
This clause has an exemption provision.
Small and medium-sized enterprises are exempt from this law.
免除 is a broader term for exemption or release from an obligation, while 適用除外 specifically refers to being excluded from the scope of application of a rule or law.
Compound of 適用 (application) and 除外 (exclusion).