The veneer in ULX plywood is rated BC. The outer, B-graded surface denotes wood with the second-highest grade level, after A-graded or N-graded veneer suitable for fine furniture or cabinetry. B-graded veneer presents a solid surface -- important for prevention of weathering in exterior-grade plywood. Unlike N- or A-graded veneer, however, it may contain small, round knots, patches and round plugs. For this reason, ULX plywood should be painted, sealed or varnished in exterior applications.
The inner veneer surface of ULX plywood denotes wood with the second-lowest grade level for plywood, above D-grade veneer. In addition to patches and knots, C-grade plywood may have small knotholes. C-grade veneer is the lowest quality veneer allowed in exterior-grade plywood. To reduce weather damage, the C-graded side, identifiable by its rougher and more irregular surface, should be oriented toward the inside of a structure when building with a BC-X plywood like ULX.
The "X" in ULX designates exterior-grade plywood. Manufactured with waterproof glue bonding the layers of veneer together, the product is weatherproof when correctly finished. The "X" designation may also refer to plywood graded Exposure-1, which is suitable only for situations in which weather exposure is temporary. Exposure-1 plywood uses the same waterproof glue as is found in ULX plywood but has lower quality, D-grade veneer that renders it less stable than ULX plywood in wet conditions.
ULX plywood is suitable for any non-marine application in which a visually appealing, high-quality natural finish is unnecessary. The irregular knots and patches make it a poor choice for building unpainted furniture or cabinets, as does the fact that it is made of pine, a softwood. As long as ULX plywood is painted or otherwise sealed, it can be used outside. However, the C-grade veneer is too low to qualify it as a marine-grade product, since marine-grade plywood must be graded BB or better.