This study uses DEFORM-2D finite element simulation software to analyze the precise piercing process of double-layer clad sheet. Frictions among the punch, the blank holder, the dies and the double-layer clad sheet are assumed as constant shear friction, but can be different. The surface of the inner diameter, the effective stress, the effective strain, the velocity field, the damage, the burr and the shearing force can be determined from the FEM simulation. In this study, effects of various piercing conditions such as the clearance, the punch nose angle, the frictional factor etc. on shearing characteristics of the burr and shearing force are explored effectively to realize the feasibility of FEM model.