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Workers at a delivery service sort parcels in Hangzhou, Zhejiang province. China is set to further open its express delivery market to foreign companies. [Hu Jianhuan/China Daily]

China will introduce "Express Ordinance" to regulate the rapid development of the express delivery market, according to a top legislative administrative institute.

In light of frequent incidents related to information security, the Legislative Affairs Office (a legislative administrative office within China's State Council) plans to work out relevant ordinance urging express enterprises to destroy delivery sheets regularly and that enterprises and staff members should not illegally sell or leak clients' information that has been acquired in the express delivery process.

It is known that, since the user information leakage has lead to telecommunications fraud, spam messages, nuisance phone calls and other social problems have become increasingly prominent and the reselling of personal information has become an underground industry.

The proposed "Express Ordinance" states that in the case of the occurrence or possible occurrence of the disclosure of user information disclosure, or damage or loss of parcels , delivery enterprises should take immediate remedial measures and report to local postal management authority.

According to the ordinance, any kind of violation will face confiscation of illicit proceeds, fines, and firms may be ordered to suspend business for rectification or even have their express business licenses revoked.

In order to reduce the cost of implementation across branches of express enterprises and business development, new ordinance regulates that express enterprises do not need to apply for a business license if a branch is filed at local postal administrative organization within 20 days of its establishment.

The volume of goods handled by the express industry has increased 6.7 times compared with 2007, with an annual increase of 40.4 per cent. China handled over 14.6 billion units of express in 2014, No.1 in the world.