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In this tutorial, the presenter demonstrates how to create handmade tags using Microsoft Word. These tags are versatile and can be used for various items such as t-shirts, gift bags, party favors, etc. They can be hung up with ribbon or keychain links. The tutorial also mentions that you can use any software of your choice to create these tags. The process starts with opening Microsoft Word, saving the file in the Word 97-2003 document format, and then customizing the tag design. The tutorial emphasizes that the process is easy and customizable to fit your needs.