I guess a 'terminal box' is a type of splice/junction box, with taps; not any type of OCP.
If that's the case, then I agree with what Greg stated, and what Ghost stated. Unprotected (No OCP) conductors cannot be routed within the structure. Putting the conductors in PVC, Sch 40 or 80 don't fly, unless you encase it in a min. of 2" of concrete on all sides. No type of raceway is compliant.
Yes, the Code does NOT specify an exact dimension of 'unprotected conductors' within a structure, it states "Closest to the point of entry". Yes, this is one of those 'gray areas', and left to the discretion of the inspectors.
The GEC (rod/water/ufer) is terminated to the neutral conductor at the main OCP, and SER ground conductor is terminated to a ground block (NOT the neutral block) in all the subpanels.
I'm quite sure IF you skim thru the Tech area here, you can find a drawing. Or, try Mike Holt website. If you are close to a local library, see if they have a copy of the NEC Handbook for whatever year NEC is adopted in your area.
Interesting that you cannot get three inspectors to agree? PS, I am an active inspector.
