Preservatives need a function
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What it says
A food to which a chemical preservative is added shall, except when exempt, bear a label declaration stating both the common or usual name of the ingredient and a separate description of its function.
The forms it gives
"Preservative", "to retard spoilage", "a mold inhibitor", "to help protect flavor", "to promote color retention". Those are the examples in the rule, and they are the vocabulary to use rather than invent around.
Separate is the operative word
The function is a separate description, not an implication. Listing an ingredient by name and relying on the reader to know it is a preservative does not satisfy the paragraph.
Which products here it reaches
Anything in this group with an added chemical preservative, which in practice means some colorants, some decor products and occasionally a specialty flour or sugar blend. Dry does not mean preservative free.
It can be a short phrase
The function description is usually three or four words in parentheses, so the cost is space rather than complexity. On a 50 mL jar that space is real and it is worth laying out for deliberately.
A bought blend can carry one
If you buy a colorant or a decor mix with a preservative in it, the preservative is in your food and your label carries the declaration. That is another reason the supplier specification matters more than the marketing sheet.
Check it at the same time as the colors
Both questions are answered from the same document: the full composition of every bought ingredient. Asking once and recording the answer covers the color naming, the preservative function and the allergen check together.
The exemption exists but do not assume it
The paragraph opens with "except when exempt", pointing at 21 CFR 101.100. That is a real carve-out and it is narrower than it sounds, so it is worth reading rather than relied on from memory.