[guided]We first reduce the assertion to the local oscillatory-integral calculation. Proper support is the hypothesis that prevents the intermediate integration over $Y$ from escaping to infinity: for compact sets in the outer variables, only a compact set of intermediate points $y \in Y$ contributes. Therefore the standard kernel composition criterion for properly supported operators (citing a result not yet in the wiki: Kernel composition criterion for properly supported operators) allows us to compute the composed kernel locally by multiplying the two kernels and integrating over $Y$.
Choose coordinate charts $(U_X,\kappa_X)$, $(U_Y,\kappa_Y)$, and $(U_Z,\kappa_Z)$. On a conic microlocal patch of $C_1$, choose a nondegenerate positively homogeneous phase function
\begin{align*}
\phi_1: U_X \times U_Y \times (\mathbb{R}^{N_1} \setminus 0) \to \mathbb{R}.
\end{align*}
This means that the critical set of $\phi_1$ in the auxiliary variable $\theta \in \mathbb{R}^{N_1} \setminus 0$ parametrizes the relevant piece of $C_1$ by
\begin{align*}
(x,y,\theta) \mapsto (x,\partial_x\phi_1(x,y,\theta);y,\partial_y\phi_1(x,y,\theta)).
\end{align*}
Likewise, on a conic microlocal patch of $C_2$, choose
\begin{align*}
\phi_2: U_Y \times U_Z \times (\mathbb{R}^{N_2} \setminus 0) \to \mathbb{R}
\end{align*}
so that the corresponding parametrization is
\begin{align*}
(y,z,\sigma) \mapsto (y,\partial_y\phi_2(y,z,\sigma);z,\partial_z\phi_2(y,z,\sigma)).
\end{align*}
The amplitudes
\begin{align*}
a_1: U_X \times U_Y \times (\mathbb{R}^{N_1} \setminus 0) \to \mathbb{C}
\end{align*}
and
\begin{align*}
a_2: U_Y \times U_Z \times (\mathbb{R}^{N_2} \setminus 0) \to \mathbb{C}
\end{align*}
belong to the symbol classes corresponding to the orders $m_1$ and $m_2$ in the chapter's kernel-order convention. Thus, after microlocal cutoffs, the two kernels are represented as
\begin{align*}
K_A(x,y)=\int_{\mathbb{R}^{N_1}} e^{i\phi_1(x,y,\theta)} a_1(x,y,\theta) \, d\mathcal{L}^{N_1}(\theta)
\end{align*}
and
\begin{align*}
K_B(y,z)=\int_{\mathbb{R}^{N_2}} e^{i\phi_2(y,z,\sigma)} a_2(y,z,\sigma) \, d\mathcal{L}^{N_2}(\sigma).
\end{align*}
This localization is harmless because the desired conclusion is microlocal, and the statement assumes properness and constant rank on the closed conic subset [lying over](/theorems/2876) $\operatorname{WF}'(A)\times\operatorname{WF}'(B)$.[/guided]