The actor was held for three hours on Wednesday but eventually left the airport with the watch in hand
Arnold Schwarzenegger was detained at Munich airport for three hours on Wednesday because of an expensive watch he brought into the country
The timepiece sold for roughly $294,000 to his longtime friend Klemens Hallmann in a charity auction
Proceeds from the sale and event will benefit the Schwarzenegger Climate Initiative
The actor and former California governor, 76, handed over the expensive Audemars Piguet watch to his longtime friend Klemens Hallmann at the Dinner & Auction for Environmental Protection on Thursday, held at the Stanglwirt in Kitzbühel, Austria.
PEOPLE has learned that Hallman, an entrepreneur and investor, purchased the watch for roughly 270,000 euros (about $294,000).
According to a press release for the event, the proceeds from the sale will go towards the Schwarzenegger Climate Initiative, an organization founded by the actor that strives to take action against climate change.
Schwarzenegger, who hosted the charity event, jokingly dubbed the accessory “the most watched watch in the world right now,” the release states.
The Terminator star had just touched down in Munich when he was detained by custom agents for three hours on Wednesday, a source confirmed to PEOPLE.
While valuables over a certain cost often have to be declared during international travel, the source added that Schwarzenegger never received the form on which to disclose he was carrying the watch.
The actor made sure to comply with the custom agents’ requests while detained.
"He cooperated at every step even though it was an incompetent shakedown, a total comedy of errors that would make a very funny cop movie," the source said.
The actor faced another issue when he was ordered to pre-pay potential taxes on the watch.
"The officers failed to use a credit card machine for an hour until they gave up and brought Arnold to a bank and asked him to withdraw cash from an ATM to pay," the source added. "The ATM they brought him to had a limit too low and the bank was closed. When he returned, a new officer brought a new credit card machine that worked."
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Despite the unexpected ordeal, Schwarzenegger was finally allowed to leave the airport with the watch in hand and bring it to the auction.
Germany's specific guidelines for duties and taxes related to customs require that all travelers coming from outside the E.U. declare "funds of 10,000 euros" or more and some “valuable objects such as jewelry, expensive digital cameras, and so on" may require special procedures.
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