What the classification says
Visible nail tips or more than 2 nail shanks per pallet.
How to spot it
Look at both deck faces for points poking through, and count exposed shanks. Class C allows at most one per component and two per pallet, and no tips.
Why it matters
Nail tips that come through the deck can puncture cartons, sacks and hands, so the rule is strict: no visible tips in any usable class, and in class C no more than one exposed shank per component and two per pallet. Tips usually appear when a pallet has been dropped, when blocks have shifted, or when an unlicensed repair used the wrong nails. EPAL 1 pallets have 78 nails in a set pattern, each with a two-letter head marking, so an extra nail out of pattern is also worth a second look.
Effect on the pallet's class
Not fit for use; also a safety hazard for handlers and loads. See Not fit for use for the full criteria.
Repair
Licensed repair only.
If no licensed repairer is practical, sell sound timber as non-EPAL wood or send the pallets for recycling.