Key Points
- Arnold Schwarzenegger was briefly detained at an airport in Munich for failing to declare a luxury watch.
- The watch was meant to be auctioned off in Austria for Schwarzenegger's climate charity.
- Criminal tax evasion proceedings were launched against the actor and former politician.
Actor Arnold Schwarzenegger has sold a watch for $447,000 at auction after he was stopped at a German airport because of the luxury item.
The politician and star of The Terminator films, 76, remained for hours at Munich Airport during a routine check on Wednesday ahead of the auction for his environmental charity.
The Schwarzenegger Climate Initiative said on Friday the Audemars Piguet watch sold for €270,000 ($447,000) in Kitzbuehel, Austria, on Thursday.
In total, the sales - which also included artworks, jewellery, a personal training session with Schwarzenegger, a concert with a German band The BossHoss and a day on the set of the German-Austrian series Bergdoktor - raised €1.31 million ($2.16 million).
"People often ask me how I can maintain a smile when considering our environment," Schwarzenegger said.
"It's simple - amidst the ongoing fight against pollution, I also witness the progress that has been achieved.
Schwarzenegger was detained by German customs officers at Munich Airport for allegedly failing to declare the valuable luxury watch.
Criminal proceedings for tax evasion was initiated against Schwarzenegger.
Why was Schwarzenegger stopped by customs?
According to the customs authorities, Schwarzenegger had not declared a valuable luxury watch upon arrival in Munich, although he apparently planned to leave it in the European Union.
Schwarzenegger was on his way to Austria for a charity auction in which he planned to sell the watch to benefit climate initiatives, according to the climate initiative that he founded.
"If the goods remain in the (European Union) you have to pay tax and duty on them," said the customs spokesman. "That applies to everyone."
"We have taken up the matter. The case will now go to the responsible criminal and fines office in Augsburg," said the customs spokesperson.
Tax should have been paid on the watch because Schwarzenegger was intending to sell it in the European Union, according to the spokesperson.
According to German tabloid Bild, officials charged Schwarzenegger €35,000 ($57,890), which included €4,000 ($6,610) in tax and a €5,000 ($8,270) penalty.
Schwarzenegger was detained by German customs officers at Munich Airport on Wednesday for failing to declare a valuable luxury watch. Source: Getty / Johann Groder/APA/EXEPA/AFP
"He co-operated at all times, even though it was an incompetent investigation, a total comedy of errors, but one that would make a very funny police film," the statement said.
"We hope that Germany invests as much energy in reorganising its economy and making it more environmentally friendly as it does in levying customs duties on people's property," it said.
What do you have to declare when entering Europe?
When entering European Union countries from a non-EU country, travellers are allowed to bring in personal goods up to a value of €430 ($710) without declaring them - though not for commercial purposes.
In many countries' cases, including Germany, travellers from outside the EU are required to declare goods they bring with them valued over €430, and import duties will also need to be paid on the item's value.
The EU allows some goods to be exempt from import duties when they are for charitable or philanthropic organisations, but they still need to be declared and proven to be for that purpose.