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The phrase "are instead subject" is correct and usable in written English.
It can be used when discussing conditions or situations where something is governed by different rules or circumstances than what might be expected.
Example: "In this case, the employees are instead subject to the new regulations that were implemented last month."
Alternatives: "are instead governed by" or "are instead bound by".
Exact(6)
But services are instead subject to the so-called "business tax" (BT).
Such plans are instead subject to an ISS cost evaluation based on burn rate and what ISS calls "shareholder value transfer" (SVT).
Unless the matter involves sexual harassment of a student by faculty, staff, affiliate, or other third party, allegations of sexual harassment against a student are not subject to Guide Memo 1.7.1, but are instead subject to the sexual harassment definition provided in Guide Memo 1.7.3 and allegations are reviewed under the Student Title IX Process.
It is not clear how to craft intermediary positions between inclusivism and exclusivism, given that the various brands of exclusivism are not absolute and test cases are instead subject to judgment along any number of parameters.
For example, the president finds that Iraq fails the 'baseline' security assessment but then omits Iraq from the ban for policy reasons". Iraqis are instead subject to additional vetting, a provision the judge did not block.
Genomes are not static but are instead subject to continuous mutations during evolution.
Similar(54)
However, those control orders were disbanded by the coalition; they were instead subject to Tpims – terrorism prevention and investigation measures – which allowed them to return to London and re-engage with Emwazi.
It is instead subject to our past experiences, our current mood, our expectations, and any number of incidental details — an annoying neighbor, a waiter who keeps banging your chair, a beautiful painting in your line of sight.
At minimum, the farrago reveals that a site with huge influence in selecting which stories and content will take off online is less democratic by far than it appears – and is instead subject to huge control by an apparently capricious group of mods.
After defeating Roman Reigns for a presumable shot at Brock Lesnar's Universal Championship, Bobby Lashley was instead subject to an inexplicable rematch with The Big Dog.
She said she was promised £50 a week as a nanny - but was instead subjected to verbal and physical abuse over a period of three years, and was not allowed to leave the house without permission.
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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