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The phrase "are initially exempt" is correct and usable in written English.
You can use it when discussing a situation where certain individuals or items are not subject to a rule or requirement at the beginning of a process or period.
Example: "Students are initially exempt from the new attendance policy during the first month of the semester."
Alternatives: "are temporarily excluded" or "are first free from".
Exact(1)
As such, they are initially exempt from registration with the Securities and Exchange Commission.
Similar(59)
He was not strictly a window signing (Football League sides were initially exempt from transfer restrictions) but his arrival in January nonetheless proved a turning point for a Swansea side bottom of the league.
In order to shield small firms, those with a stockmarket value of less than $75m were initially exempted.
Beginning in 1711, Stirling matriculated at Balliol College, Oxford, England, on various graduate scholarships for which he was initially exempted as a Jacobite (a supporter of the exiled Stuart king, James II) from swearing a loyalty oath to the British crown.
Of course other issues matter too; but if you hate the war, you must surely now be seriously disenchanted with the warrior.Mr Brown was initially exempted from giving evidence to the inquiry before the general election, on the grounds that his appearance would "politicise" the process.
To his dismay, he was initially told the only way he might be exempt for 2012 would be to use one of his career money-list exemptions.
However, those headquartered in emerging markets will initially be exempt due to the "different market conditions" they face.
Nor are journalists exempt.
People are not exempt.
His students are not exempt.
Online currencies aren't exempt.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com