If the wire your supply house has is only marked type USE it can not be used for inside wiring. See 338-10(4)
I don't have much experience with USE cable since it is not stocked at most supply houses in my area but I believe it is frequently also listed as type RHH/RHW.
Remember it will cost more for the larger conduit to use AL wire so it probably will not save much if anything.
Curt
