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James, Grade 2 product is factory refirbished or new blemished product. Product has some cosmetic blemishes and carrys a factory warranty for defects in workmanship and function. Cosmetic issues will NOT be covered under warranty. --- https://www.chiappafirearms.com/category.php?id=30

This is a "second" item. Not second as in used but probably has some kind of issue mechanically or cosmetically which have been refurbished.