Although I have found another thread here that seems to discuss the same issue, it was not exactly the scenario I am experiencing. http://www.experts-exchange.com/Networking/Email_Groupware/Exchange_Server/Q_21129703.html
In a remote office that has it's own Exchange server part of the same domain in AD and same Exchange organization when they try to send a message to a global distribution group, it doesn't work. The last action reported in the tracking is "Message Submitted to Categorizer". No message delivered, no NDR either.
I've checked the GCs and the memberOf query works. The server has GroupShield installed but I've checked the logs and could not find anything there either.
Any help is appreciated.