Grading is the process of determining the value of timber. Properly graded timber gives a sense of worthiness and satisfaction to the buyer. Graded timber of any species enjoys higher prices than ungraded timber. In the early days, not many pieces of timber were traded because grading was done mainly by rule of thumb.

Now, most countries and regions have their own teak grading rules, with different rules for different species. For example, the National Hardwood Lumber Association (NHLA) Rules from the United States, the British Columbia Lumber Grading and Quebec Grading Rules from Canada, the Finish Grading Rules and the Malayan Grading Rules (MGR) are some of the well-known rules.