The fixed-price, government-regulated Ensemble Artisanal offers handicrafts from all over Morocco. The store is a little pricey, but it's a good place to develop an eye for quality items and their market prices before you hit the medina shops. You can also custom emboss or cover bound books in leather.
Rue de Belgique at Rue Ensallah, 3 blocks west of Pl. de la France, Tangier, Morocco