Arnold Schwarzenegger was detained at a German airport for allegedly failing to declare a luxury watch he was planning to auction for charity.
The Hollywood actor was held for three hours at Munich airport on Wednesday.
An investigation for alleged tax evasion was launched as the watch was intended to be sold within the European Union (EU).
According to EU rules, anyone arriving with "cash or certain valuable items" over €10,000 (£8,580) must declare it.
However, a source told CBS News, the BBC's US partner, that Schwarzenegger was not asked to fill out a declaration form.
The actor, politician and climate change campaigner was eventually able to pay the tax, but only after overcoming a number of problems.
After an initial card machine did not work, it was discovered that the nearest bank was closed and ATM withdrawal limits were too low, meaning the 76-year-old had to wait for a new card machine to be brought by customs officials, the source said.
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