You can’t use ungraded lumber on a structure that’s not your own residence unless you meet the 4 requirements I listed earlier. A farm shed is exempt and you, basically, can use whatever you want. But to use ungraded lumber on a structure, it has to be your personal RESIDENCE for at least a year after CO, wood has to come from that land, has to be 19% MC max, and inspector has to walk the land before timber is logged. If the inspector hasn’t walked the land first, tough shit. The State has give a waiver on the graded lumber requirement and if you don’t meet all 4 conditions for the waiver, there is no reason an inspector should or would sign off on ungraded lumber use.
There is another option. Get an engineer or architect to sign off on the structure, under their stamp, stating the structure meets minimum codes for NC, etc. I mean, how else do you think timber framed homes are built? Many of those logs aren’t KDHT or carry any grade stamp….