This level is actually a tool. Using it you can create custom components. They are handy when you have repeated logic or just want to shrink things down.
The game will sometimes make a custom component out of your solution to a level, such as the next one. It is optional to overwrite the custom component each time you beat such a level.
Custom components get to use some special components to define their own input and output pins. Output pins can optionally be switched. Make sure to use switched output pins instead of the switch component.