Quality and Delivery Contract Clauses

Hello everyone!

I am a few weeks away from making my first purchase order and have started drafting the purchase contract.

Context: I am purchasing 1,000 units of a consumer electronics product from a manufacturer based in Shenzhen. They already sell this product; I have just changed a few operational features and will sell it under my own brand with custom packaging. The product itself is about 90% identical to their original model. I traveled to China to meet them in person and visit the factory. I am fully confident they are legitimate and professional, but I still want to protect myself and have everything tightly secured to avoid any unpleasant surprises.

Question: I would really appreciate it if someone with experience sourcing from China could tell me if the clauses I've listed below are reasonable, or if they might be considered overly aggressive. I am aware that I am a very small customer for them, and this is the beginning of what I hope will be a prosperous collaboration. I don't want to offend them or have them pass on my business because the contract seems too demanding. What is your opinion? (For sure the final version will be checked by a Chinese attorney)

Clauses:

• Payment terms: 30% upfront, 70% upon delivery (after a passed Pre-Shipment Inspection - PSI).
• Delivery delay penalty: A grace period of 7 calendar days after the Agreed Delivery Date. After that, a 1% discount on the total order value per day of delay.
• Trademark protection: They shall not sell products under my brand. (I don't mind if they sell the customized product they manufactured for me to other buyers, as long as it isn't under my brand name).
• Failed PSI: I will withhold the final 70% payment. The supplier must promptly rework, repair, sort, or replace the defective units within 14 days after the failed inspection report is shared. The supplier must also cover re-inspection costs. (Question for the sub: Is there anything else I should include here, such as a discount for falling below a certain AQL?)
• Quality standards: I have a very thorough document defining all technical specs and tolerances, which will be attached to the contract.

Thanks in advance!

Upwards and onwards,

Alonso