This paper presents anew classification system for shearing operations and concepts are developed for extracting entity groups, recognizing them, and characterizing shearing features for sheet metal components in two dimensional (2-D) layout. Features are recognized by studying the wireframe representation of the layout and a set of principles are derived to relate the features geometrically and topologically. Features which form potential candidates for CAPP systems are determined based on the new classification system. This helps in the development of many alternative process plans in general and selection of an optimum process plan based on constraints in particular. Features recognized along with geometrical information can be used in codification of parts, optimization of tool path, for mapping the features for tools to manufacture, inspection, etc.