The simplest filter for this will be to include this WHERE clause:
;WITH BILLSOFMATERIAL(COMPONENT, SUBCOMPONENT, PARTS_COUNT)
AS(
SELECT C.COMPONENT, C.SUBCOMPONENT, C.SUBCOMPCOUNT
FROM COMPS C
WHERE C.COMPONENT = 'A'
UNION ALL
SELECT B.COMPONENT, C.SUBCOMPONENT, B.PARTS_COUNT * C.SUBCOMPCOUNT
FROM BILLSOFMATERIAL B, COMPS C
WHERE B.SUBCOMPONENT = C.COMPONENT
)
SELECT COMPONENT, SUBCOMPONENT, SUM(PARTS_COUNT) AS "TOTAL QUANTITY"
FROM BILLSOFMATERIAL
WHERE SUBCOMPONENT NOT IN (SELECT COMPONENT FROM COMPS)
GROUP BY COMPONENT, SUBCOMPONENT
ORDER BY COMPONENT, SUBCOMPONENT;