The objective of this paper is to investigate the effect of clearance and the configuration of die system on burr formation by FEM analysis and experimental tests. Compared with casting, forging and machining, shearing has been known, especially in heavy or mass-production industries, as a very economical and fast way to obtain the desired shape Recently, the shearing process becomes widely used in the small and light electronic component manufacturing industries. When shearing a part of sheet metal, the burr formed on the cutting edge is usually unavoidable. The burr would not only degrade the precision of products but also causes additional cost for the deburring process. In this paper, the influence of shearing parameters such as clearance and configurations of the lower pad (ejector) on burr formation is investigated by using the experimental and numerical approach. From the experimental results, it has been shown that the more narrow clearance gives the smaller burr height and the higher shearing forces. The removal of lower holder also makes the sheared surface integrity and the dimensional accuracy become worse. The FEM results (using DEFORM-2D) show good agreement with the experimental results.