We apply our proprietary volume‐integral eddy‐current code, VIC‐3D©, to the solution of challenging NDE problems that involve ferromagnetic anomalies or workpieces. These include problems with “wear scars and permeable crusts” in steam‐generator tubing, characterization of coatings with electrical and magnetic layers, and flaws in ferromagnetic workpieces. Validation of the code by the use of benchmark experiments will also be described. Finally, we will explain the development of the mathematical model in terms of volume‐integral equations through the use of Amperian currents for magnetic effects. © 2003 American Institute of Physics