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Arnold Schwarzenegger was detained at the Munich airport for three hours, a source confirmed to Fox News Digital.

Schwarzenegger had traveled to Germany "with a watch he owns" and "might be auctioning" off during a charity event Thursday in Kitzbühel, explained the source, who is familiar with the matter.

"He was never asked to fill out a declaration form, and he answered every question from customs officers honestly. 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."

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Arnold Schwarzenegger wears pinstripe suit

Arnold Schwarzenegger was detained at an airport in Germany over a luxury watch he owns, a source confirmed to Fox News Digital.  (Jason Merritt/Getty Images)

During his detention, Schwarzenegger agreed to pre-pay any potential taxes on the watch.

"The watch will likely still be auctioned tomorrow, and the Schwarzenegger Climate Initiative will properly report it, as all of Arnold’s nonprofits do," the source claimed. "His charity auctions raise millions of dollars every year for after-school programs for kids all over the United States and environmental work around the world. We hope Germany spends as much energy turning around their economy as they do asking for tax payments for people’s property they bring into the country, and we hope next time they don’t make him pay taxes on his suits."

A representative for the Munich airport did not respond to Fox News Digital's immediate request for comment.

Close up of Arnold Schwarzenegger

Schwarzenegger was detained for three hours at the Munich airport. (Dominik Bindl/Getty Images)

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Schwarzenegger is hosting an auction during this year's Hahnenkamm Weekend in Kitzbühel, according to a press release. Guests will be able to bid on a training session with the "Terminator" star, along with a living room concert by The BossHoss and other experiences.

The proceeds will benefit the Schwarzenegger Climate Initiative. 

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Arnold Schwarzenegger in a light blue shirt and off-white suit speaks into the microphone on stage

Schwarzenegger is hosting a charity auction in Germany. (Stefanie Keenan/Getty Images for Academy Museum of Motion Pictures)

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Fox News Digital's Larry Fink contributed to this report