The four conditions
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One, the form
Any aromatic vegetable substance in the whole, broken, or ground form. Three forms named, which covers a peppercorn, a cracked seed and a powder alike.
Aromatic is doing work there
A vegetable substance that is not aromatic is not a spice, which ties the definition to the volatile fraction from its first clause.
Two, the exception
Except for those substances which have been traditionally regarded as foods, such as onions, garlic and celery.
Which is a custom test rather than a chemical one
Traditionally regarded is about how people have treated a thing, and there is no threshold in it.
Three, the function
Whose significant function in food is seasoning rather than nutritional. So the role in the recipe is part of the definition.
Significant is the qualifier
Not its only function. A substance with some nutritional contribution can still be a spice if seasoning is the significant one.
Four, true to name
Three words, and they are an adulteration test. A substance sold as one spice and cut with another is not true to name.
And then the volatile oil clause
From which no portion of any volatile oil or other flavoring principle has been removed. Which has its own section here.
No portion is absolute on its face
Not a material portion, not a significant portion. No portion of any volatile oil or other flavoring principle.
Or other flavoring principle is broader than oil
So the clause reaches whatever carries the flavor, not only the volatile oil fraction.
Four conditions and the clause, all in one sentence
Which is why it is quoted whole. A paraphrase loses either the exception or the qualifiers.
Vegetable is the word that bounds it
An aromatic vegetable substance, so an animal or mineral seasoning is outside the definition from the first clause onward. Salt is the obvious case and it is one of this group's six leaves.
And the whole thing is a labeling definition
It decides what may be declared as spice on an ingredient list, which is the practical consequence and not a safety rule.