Grade 1 NWOT (New without tags): Item may be outside of original manufacturer's packaging, but it will show minimal to no signs of wear
Grade 2 Very Good to Excellent: Item may have been previously washed and may show minor usage. Usually the inside size tags shows wear. Item will surpass AR 670-1 or you can return it.
Grade 3 Turn-in to Fair: Item may show signs of heavy use and may show signs of fading and dirt. Item may be used in the field but not good for garrison/inspection. Good for non-military personnel or as a turn-in when ETS’ing
Grade 4 Needs repairs: Items needs major repairs (sewing most likely) before being useful