Hi guys. Here is something confuses me a lot when reading the IATF16949. In the subclause 4.3.1, it is stated that "The only permitted exclusion for this Automotive QMS standard relates to the product design and development requirements with ISO 9001, Section 8.3". My understanding towards this content is that the QMS which conform to IATF16949 can only do the exclusion declaration on the Section 8.3. And the reason for the exclusion is also quite obvious to me. Some companies just don`t do the product design and developement. They get related information from the cutomers. Since there is no process needed for product desgin and developement, the exclusion is also justified. What is confusing me is that there is also a subclause, subclause 18.104.22.168.1 Automotive product-related software or automotive products with embedded software which states the requirement for the software developement. In reality, a lot of organizaions (my company is among them) in the Automotive supplier chain have nothing to do with the software stuff. Thus, for this kind of organizaion, 22.214.171.124.1 should be also excluded from their QMS (for there being no software involved). Here is the question. If we also exclude the 126.96.36.199.1, it would be logical to say that we will no longer conform to 4.3.1 which I think it doesn`t make any sense. Looking forwards to some ideas on this matter. NOTE：In the case of my company, we actually exclude 188.8.131.52.1 in the quality manual. And in the transfer audit, there is no relevant NC about it.