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Pulsed eddy-current (PEC) testing is an electromagnetic nondestructive testing & evaluation (NDT&E) technique and defect classification is one of the most important steps in PEC defect characterization. With pulse excitation, the PEC response signals contain more features in time domain and rich information in frequency domain. This paper investigates feature extraction techniques for PEC defect classification including rising time, differential time to peak and differential time to zero, spectrum amplitude, and differential spectrum amplitude. Experimental study has been undertaken on Al-Mn 3003 alloy samples with artificial surface defects, sub-surface defects, and defects in two-layer structures under different lift-off. Experimental results show that methods are effective to classify the defects both in single-layer structures and two-layer structures. Comparing the results of different methods, it is found that differential process can eliminate the lift-off in defect classification in both time domain and frequency domain. The study can be extended to defect classification in complex structures, where lift-off effects are significant.