It is removed from the outside .
Gear oil will come out when you remove the seal, if you haven't changed the oil in some time, may be a good time to do it .
Remove the allen head bolt, remove the shift shaft, then use something like a cotter-pin removal tool to get the seal out .
Do not apply force to the surrounding area, and don't score, scrape or gouge up the bore where the seal rests , also make sure the seal is in straight, or it may cause shifting problems .
Make sure you get the correct seal, earlier bikes had a seal 2 mm smaller, and if you order your parts from a non-airhead
knowledgeable BMW dealer they may lead you astray, like one of our members experienced a couple of months ago .