In the Schengen visa code handbook on page 60, you will find the following passage:
Recommended best practice in case a false, counterfeit or forged travel document is detected:
Such documents should never be returned to the holder but preferably the offence should be reported and the document transmitted to the authorities of the issuing third country. However, in case of disproportionate punishment for such offence on the part of the third state concerned, the consulate should not report the case to the authorities of third country concerned.
Which states is this paragraph referring to when it talks about “disproportionate punishment for such offence”?