Interoperability in CAD system is the main scenario in product development stage. Product data exchange has been carried out by means of neutral file format such as IGES, STEP, Para solid etc. Due to the problem in information loss redundancy and static data exchange the accuracy of part can be significantly altered during the design process. Even though the data loss is minimal, this would affect the model integrity. In this paper I have simulated the model in CATIA and PRO/E for interoperability issues and outlined the importance of data exchange and evaluate experience gained with the use of Data exchange standards.