[exim] Not local Domain treated as local

Hi,

I'm trying to send an email to Tougalo.edu which is not in moy local
domain list. So this email should be handled by one of these dnslookup
routers which are before the smarthost routers.

dnslookup:
driver = dnslookup
headers_remove = Received
domains = ! +local_domains
transport = remote_smtp
ignore_target_hosts = 0.0.0.0 : 127.0.0.0/8

I checked nslookup for tougalo.edu and there's no DNS for this domain.
So wouldn't processing stop and a bounce be generated after the
dnslookup router, rather than processing continuing all the way through
to the last router (a smart host router back to the sending server)
which causes a "unable to relay" bounce?

Exim version is 4.67.

Thanks.
Craig