HOW IS THE BOX LID MADE ON A GIFT BOX CAKE?

here is the buttercream version

http://www.make-fabulous-cakes.com/gift-box-cake-tutorial.html

When I made mine in fondant, I just cut a square on inch larger on all sides and laid on top of the original fondant and just folded my ends like when you wrap a package

but here is another way
http://www.semihomemade.com/entertaining/01_tiffany.htm

hth

Thank you, I think I'll try your technique I think it will look more realistic

Some do the fondant over the cake pan (like I did in my Tiffany Box cake -- see my pix.) Some do gumpaste over the cake pan. Some do fondant over styrofoam. There's also a thread called "my hatbox instructions" that's a sticky in one of the forums you might want to check out. As always there's also Sugarshack's Boxes and Bows DVD which is very helpful too. Good luck!

Here's that hatbox thread link: http://cakecentral.com/cake-decorating-ftopic-215781-0.html