Grading is a value adding process as “adding value” is an action that adds worth to something through a specific process. Properly graded timber gives a value of worthiness and satisfaction to the buyer and graded timber of any species enjoys higher prices than ungraded timber. In the early days not many items of timber were traded and grading was mainly by rule of thumb. Lumber was sold either log run (or log run, culls out), or on the basis of comparison. In the first instance, the lumber was manufactured, but the relative quality was not determined. In the second the lumber was contracted for as similar to, or of the same quality as previous shipments. With the passage of time, more and more value added items were manufactured and a great number of grades had to be created to meet the needs of people. More grades meant more arguments, and more arguments meant more need to standardize. Major timber traders considered that establishing sets of written rules acceptable to all in the trade would be more advisable than “rule of thumb” grading.As a major teak producer, Myanmar has its own sets of grading rules for teak and grading of teak logs and lumber in Myanmar is done according to these rules. Until now there appears to be no collaboration regarding grading among the teak producers in the Region. Teak, whether in the rough or processed is still a natural product, and growth conditions are mainly influenced by soil and climate. Until a wonder technique has been perfected to produce finer specimens of trees, grading rules will remain the arbiter of what a piece of timber is worth.