What if there actually is a kiln and grade stamp on it and I cut the board in lengths that don't have the stamp on it. Is that an illegal stud? What if I cut up some longer dried and graded boards to use as headers for doors or windows, no stamp left.
In my state, any piece showing has to have a visible stamp, even if that means some lumber gets wasted.
The questions is, for stuff like interior walls, when does it get inspected? I've heard of people getting the framing inspection done after the drywall is up, but it might have been only for a remodel. One of the common dodges is to have only the exposed lumber used to form the rough openings be graded, and anything under the rock might or might not be. All depends on your local department, I guess, and if you're asking questions, they may insist on seeing it before you hang the wallboard.