With regards to the UK laws when it says "remove lasers above class II from the general market" (or similar was too lazy to quote properly) Does that mean anything above class II will be confiscated by customs?
No, since the UK is also bound by EU legislation regarding unhindered import and exports of goods and services, there is no basis for confiscations from items shipped or relayed anywhere within the EU. Practically, this will most likely mean there is no control of similar items coming in from outside the EU.
There is legislation to pull dangerous products off the consumer market, particularly if they pose a health risk in their intended application. By that logic, it would be feasible to take a class-3B laser off the market if its intended purpose is a presentation pointer. If the intended use is something like 'professional use' or 'replacement component for ..', there would not be much of a problem at all.
There is a key difference between US and EU legislation here: The EU safety regulations are in place to protect the unaware audience at large. In simple terms, this would mean that selling a 100 mW laser as a kids toy is prohibited, but selling it as a cutting tool is perfectly alright.
The basis is that people know what they are buying, and how dangerous it is. You would not buy a chainsaw as a kids toy either. High powered lasers are very similar: not inherently unsafe in capable hands, but health hazards for the unaware of the dangers.
In addition, i should probably add that european legislation takes common sense into consideration at trial. If you die after ingesting a pillow here its your own darn fault, not the manufacturers that forgot to include that specific warning label.