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Folders and subfolders are converted into tags. Let's assume that the folder "Google" has a subfolder called "Blogs". The two folders are converted into two tags: "Google" and "Google > Blogs", while the bookmarks from the "Blogs" subfolders get both tags.
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For now, there's no way to sync Google Save with Chrome bookmarks and the Bookmark Manager extension doesn't integrate with Google Save, even if they're closely related.
{ Thanks, Mukil Elango. }