Made a package, using paper in the War Department! (7)
I believe the answer is:
wrapped
'made a package' is the definition.
Although both the answer and definition are past participle verbs, I can't see how they can define each other.
'using paper in the war department' is the wordplay.
'using' is an anagram indicator (the letters used in a different way).
'in the' indicates putting letters inside.
'war department' becomes 'wd' (this might be a standard abbreviation of which I'm unaware).
'paper' is an anagram of 'rappe'.
'rappe' put within 'wd' is 'WRAPPED'.
Can you help me to learn more?
(Other definitions for wrapped that I've seen before include "Enclosed, swaddled" , "Enfolded - swathed" , "Like many a present" , "Put in envelope" .)