Veteran Austrian actor, businessman, filmmaker, and former professional bodybuilder Arnold Schwarzenegger is currently facing criminal tax proceedings after he was stopped by customs officials after failing to declare a luxury watch at the Munich Airport, in Germany.

Officials have confirmed the 'Terminator' actor was stopped for hours by customs at Munich Airport after entering Germany with a luxury watch that was potentially to be auctioned at a charity event.

Arnold who was once, a California state governor was stopped for a routine check after arriving in the country and, while conducting a search officers found a Swiss Audemars Piguet wristwatch valued at about 20,000 euros (Sh. 3.5 million) among his luggage which the veteran actor had failed to declare.

During interrogation, the 76-year-old 'Predator' star told the officials that the watch was his personal custom-made watch that he'd intended to auction off at a climate initiative charity event being hosted in his home country Austria this weekend.

According to law, goods over the value of 430 euros (Sh. 75,000) that will stay in the European Union have to be declared and, where appropriate, duty paid on them.

“Criminal tax proceedings have been initiated by us, the watch should have been registered because it is an import.

If the goods remain in the EU, you have to pay tax and duty on them. That applies to everyone," a spokes person of the Munich's customs office, identified as Thomas Meister said while speaking to German broadcaster RTL.

The matter now goes to a customs penalty body in Augsburg, which will evaluate the case.

Speaking about that Thomas said it was still too early to determine how the case will roll.

"This will then be processed by our criminal and fines office. It’s too early to say what the outcome will be.

There are many factors that have to be taken into account. It will still take some time,” the customs officer noted.