This sounds like the classic case of Head Office, being located in one country, is too myoptic to understand that satellite store, in a whole other country doesn't need to follow the same paperwork as the other 98% of the stores they run.
I've seen stuff like this hundreds of times, where HO makes a blanket directive that simply isn't appropriate for some stores.
Anyone remember the kerfuffle recently with Canadian Tire recording down PAL info and personal address info in their little ammunition book? It's an Ontario thing only, but ALL Canadian Tire stores were doing it, because Ontario is the center of the universe after all, and if Ontario does it, by golly, everyone else should too.
Likely all that is required in this case is for one person to make a rational arguement with the store manager, pointing out that this BATF form is a USA thing only, and does not apply in Canada. If need be, getting on the horn with Big Corporate, especially with a carefully worded warning letter from the CSSA and NFA, would get things straightened out PDQ.